43The casual usage of the term ‘the MPC’ refers to annual MPC given by 1- (1- quarterly MPC )4  (recall again that the models in this paper are calibrated quarterly). We make this choice because existing influential empirical studies (e.g., Souleles (1999); Johnson, Parker, and Souleles (2006)) estimate longer-term MPCs for 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.