It has been estimated that the marginal propensity to consume out of tax rebate money is around 1/3 which means the multiplier from just tax rebate programs will b about 3.

Name: It has been estimated that the marginal propensity to consume out of tax rebate money is around 1/3 which means the multiplier from just tax rebate programs will b about 3.
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Quizplus · Accepted Answer

The multiplier effect is calculated as 1/(1-MPC). If the marginal propensity to consume (MPC) is 1/3, the multiplier would be 1/(1-1/3) = 1.5, not 3.

It Has Been Estimated That the Marginal Propensity to Consume