The inflation rate is 4%.Social Security payments automatically rise 4%.This adjustment is authorized by an:

Question

Quizplus · Accepted Answer

An escalator clause is a contract provision that provides for an automatic adjustment of wages, rent, or other payments based on a certain index, such as the inflation rate. In this case, the Social Security payments automatically rise 4% due to the escalator clause authorized by the government. The other options (inflation rate, elevator clause, insanity clause) do not accurately describe the mechanism for the automatic adjustment.

The Inflation Rate Is 4