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to answer your question you need to know that all sensors work together to provide info for computer input . in order have the desiered out put,but computer can compensate for lack of info known as set values or limp mode.your speed sensor lets the computer know vehicle is moveing.thus adjusting fuel ratios for improved fuel economy.my guees is that you have an loose or contamanation, on the speed sensor or a defected sensor. not to get to complacated sensor uses hall effector magnet and notched wheel produces on off signal to produce a small voltage.check your vacum switch on the top drivers side of the transfer case for loose and/or broken vacum hoses also check the vac resevor located on the under side of the hood driver side.this may solve your problems depending on what type of four wheel drive you have being i.e. manual shift or push button.the 1994 model is a trsition model therefore could be either . hope this is helpfull if to big of a hassle recomend a shop or get you a repair manual.

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Q: Would a bad speed sensor on a 1994 jimmy S15 disable the four wheel drive?
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