The U.S.Social Security system:
A)invests the taxes paid by workers in interest-bearing assets.
B)requires workers to pay a fixed lump sum tax every year.
C)encourages people to save more.
D)transfers funds from current workers to current retirees.

Question

Quizplus · Accepted Answer

The U.S. Social Security system operates on a pay-as-you-go basis, where current workers' taxes are used to fund benefits for current retirees. This means that funds are transferred from current workers to current retirees.

The U.S.Social Security System