Which of the following statements about the Social Security cost-of-living adjustment is (are)true?
I.The amount of the adjustment is limited to a maximum of 2.5 percent annually.
II.Increases are based on changes in the consumer price index.

Question

Quizplus · Accepted Answer

Only statement II is true—the cost-of-living adjustment is based on changes in the consumer price index. The maximum increase is not limited to 2.5 percent annually; actual increases vary based on the rate of inflation.

Which of the Following Statements About the Social Security Cost-Of-Living