Pay-as-you-go financing is an attractive method of financing pensions if total wages and salaries grow _ the rate of return.
A)slower than
B)inversely to
C)at the same rate as
D)faster than

Question

Quizplus · Accepted Answer

Pay-as-you-go financing relies on current workers' contributions to pay for current retirees' benefits. It is sustainable if the growth in total wages and salaries is faster than the rate of return, ensuring sufficient funds to cover pension obligations.

Pay-As-You-Go Financing Is an Attractive Method of Financing Pensions If