according to the new classical theory, a $50 billion increase in government expenditures financed by a $50 billion increase in the budget deficit will a. stimulate aggregate demand, causing prices to rise (inflation). b. be largely offset by a reduction in private spending because individuals will anticipate higher future taxes. c. cause real output to expand $200 billion if the marginal propensity to consume is three-fourths. d. exert little impact on real output because higher real interest rates will crowd out private spending.