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3 years ago

If the CPI was 95 in 1955 and is 475 today, then $100 today purchases the same amount of goods and services as...

Business

1 answer:

dolphi86 [110]3 years ago

8 0

Answer:

The correct answer is option a.

Explanation:

The CPI or consumer price index is a tool to measure inflation in the economy. It includes a basket of goods and services generally consumed by households. Changes in the price of these goods and services are calculated to measure the inflation rate.

In the year 1955, the CPI was 95.

In the current year, the CPI is 475.

This means that today $100 will be able to purchase

= $\$ 100 \ \times\ \frac{95}{475}$

= $20

$100 in current year will be able to purchase the same amount of goods and services that $20 purchased in the year 1995.

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mrs_skeptik [129]

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2 years ago

You are considering the purchase of a certain stock. You expect to own the stock for the next four years. The current market pri

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Answer:

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