Assume that Daniel makes $40,000 a year. His employer gave him a $10,000 a year raise. Daniel's spending increased from $35,000 to $42,500.

1. What is Daniel's MPC? Explain. (In other words, show the math)
2. Based on your answer in part A, if Congress increased spending by $5 billion, how is GDP impacted? (hint: Recall that "how" means "how and why")