Payments to Social Security recipients are indexed to the rate of inflation, as measured by the consumer price index. This means that when the rate of inflation increases, the _____ Social Security recipients _____.
A)market basket for; increases
B)market basket for; decreases
C)payments to; increase
D)payments to; decrease

Question

Quizplus · Accepted Answer

Payments to Social Security recipients are indexed to the rate of inflation, which means that they increase with inflation to ensure that the purchasing power of recipients is maintained. Therefore, when the rate of inflation increases, the payments to Social Security recipients will increase.

Payments to Social Security Recipients Are Indexed to the Rate