MILLER Question 08: Assume the marginal propensity to consume (MPC) is 0.5 . If consumer confidence increases and this leads to a spontaneous increase in spending of $4 billion on the part of some consumers, what should we estimate will be the total change in GDP for economy? Hint: this is similar to the class problem in your lecture notes. income multiplier =1MPC1= Real GDP =( Dinitial spending ) income multiplier = =