If you index Social Security benefits for prices rather than wages, this is likely to
A)reduce benefits.
B)increase benefits.
C)prevent Social Security bankruptcy altogether.
D)bring about Social Security bankruptcy earlier.

Question

Quizplus · Accepted Answer

Indexing Social Security benefits for prices rather than wages would result in reducing benefits. That's because prices generally increase at a slower rate than wages, and switching to price indexing would slow the rate of increase in benefits. Therefore, it will ultimately result in a reduction in benefits.

If You Index Social Security Benefits for Prices Rather Than