⁴⁶The MPCs that we calculate are annual MPCs given by (recall again that the models in this paper are calibrated quarterly). We make this choice because earlier influential studies (e.g., Souleles (1999); Johnson, Parker, and Souleles (2006)) attempted to estimate long-term MPCs, which refers to the amount of extra spending that has occurred over the course of a year or 9 months in response to a one unit increase in resources. Henceforth, the casual usage of the term ‘the MPC’ refers to annual MPC.