The solvency of Social Security can be extended if
A)the retirement age is reduced.
B)the cap on taxable earnings is lowered.
C)the trust fund invests in government bonds.
D)the tax rate is increased.

Question

Quizplus · Accepted Answer

Increasing the tax rate would increase the amount of revenue coming into the Social Security system, which would help to extend its solvency. Reducing the retirement age may decrease the amount of revenue coming into the system, and lowering the cap on taxable earnings may not be enough to make a significant impact. While investing in government bonds can earn some interest, it may not be enough to fully address the solvency issue.

The Solvency of Social Security Can Be Extended If