Suppose that households start preferring imported goods more than domestically- produced goods. (The marginal propensity to import rises.) Consider the multiplier process. This change means that when households get extra income, they spend on imported goods and on domestic goods. ion Therefore, in each stage of the multiplier process, when new comes into households, of it is used for spending domestically in the circular flow. As a result, the extra spending and therefore new in the second round and third round and subsequent rounds of the multiplier process is Therefore, the multiplier is larger smaller more less spending saving income