If the MPC were about 0.75 on average, this would imply a government spending multiplier of about 4, according to the simple formula used in introductory courses. However, real world estimates of the spending multiplier in the US are often in the (wide) range of 0.5 to 2.25. What is a frequently cited reason why the measured spending multiplier is lower than what the simple formula would predict

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan