Related to the Economics in Practice on p. 453: The Consumer Price Index in the United States was 215.3 in 2008 and 214.5 in 2009. If a retiree received a monthly pension check of $3,200.00 in 2008 and his pension is tied to the CPI, how much would his monthly pension check be in 2009?
A) $3174.40
B) $3,188.11
C) $3,200.00
D) $3,214.50

Question

Quizplus · Accepted Answer

The pension is adjusted based on the CPI change. The CPI decreased from 215.3 to 214.5, so the pension should decrease proportionally: $3,200 * (214.5 / 215.3) = $3,188.11.

Related to the Economics in Practice on P