If Social Security is over-indexed,real payments
A) are lower than they would be if they were correctly indexed.
B) are higher than they would be if they were correctly indexed.
C) are constant.
D) are decreasing.
E) are under-indexed.

Question

Quizplus · Accepted Answer

If Social Security is over-indexed, it means that the cost-of-living adjustment (COLA) used to adjust Social Security payments for inflation is higher than the actual inflation rate. Therefore, real payments would be higher than they would be if they were correctly indexed.

If Social Security Is Over-Indexed,real Payments