The benefits paid by the largest pension program in the United States are:
A)not adjusted for changes in the price level.
B)adjusted for changes in the price level.
C)revised every five years.
D)adjusted for changes in the nominal rate of interest.
E)adjusted for changes in the real rate of interest.

Question

Quizplus · Accepted Answer

The benefits paid by the largest pension program in the United States (Social Security) are adjusted for changes in the price level through cost-of-living adjustments (COLAs) every year. This ensures that the purchasing power of the benefits remains the same even as prices of goods and services increase over time.

The Benefits Paid by the Largest Pension Program in the United