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7. What is one of the problems with the federal government taking on such massive debt? A. The interest payments towards the debt take up a large portion (8.5%) that could have been spent on other things. B. The military will need to start selling more bonds and stocks to be able to pay for its equipment. C. Social Security and Medicare will increase stock prices to continue surviving. D. No one will be able to get a credit card until the government pays its debt off. 8. True or False: Increasing taxes can help slow down inflation. A. True B. False 9. A recent economic downturn has caused falling housing prices. People are not moving as much. Those who are selling their homes are losing money because the values have decreased. Some are losing homes they can no longer afford. Which of the following responses is a reasonable fiscal approach to the problem? A. Decrease the banks' reserve requirement. B. Increase the banks' reserve requirement. C. Decrease spending on housing programs. D. Increase spending on housing programs. 10. What is a deficit? A. When the government spends more money than it takes in through revenue. B. When the government has the same amount of money spent that it took in. C. When the government sells bonds to individuals and investors. D. When the government takes in more money in revenue than it spends