Where do transfer payments (unemployment subsidies, etc.) enter in the multiplier formula for the IS curve?
The usual multiplier is of the form $\frac{1}{1-c(1-t)-m}$, where $c$ is the marginal propensity(m.p.) to consume, $m$ is m.p. to import, and $t$ is the tax rate. I've tried to see $t$ instead as net transfers rate, i.e. transfer payments minus taxes. But I'm not sure if it's the right way to think about this...
Any help would be appreciated.