The nominal salary paid to the president of the United States and the Consumer Price Index (CPI) are given for various years below. Table 7-9
Refer to Table 7-9. The salary of the president of the United States in 2000 was $400,000. In 1940, the president's salary was $75,000. If the Consumer Price Index was 8.1 in 1940 and 100 in 2000, the 1940 presidential salary measured in terms of the purchasing power of the dollar in 2000 would be
A) less than $75,000.
B) less than $400,000.
C) approximately $668,850.
D) approximately $750,000.
E) approximately $926,000.

Question

The nominal salary paid to the president of the United States and the Consumer Price Index (CPI) are given for various years below. Table 7-9
 Refer to Table 7-9. The salary of the president of the United States in 2000 was $400,000. In 1940, the president's salary was $75,000. If the Consumer Price Index was 8.1 in 1940 and 100 in 2000, the 1940 presidential salary measured in terms of the purchasing power of the dollar in 2000 would be
A) less than $75,000. 
B) less than $400,000. 
C) approximately $668,850. 
D) approximately $750,000. 
E) approximately $926,000.

Quizplus · Accepted Answer

The Answer of The nominal salary paid to the president of the United States and the Consumer Price Index (CPI) are given for various years below. Table 7-9
 Refer to Table 7-9. The salary of the president of the United States in 2000 was $400,000. In 1940, the president's salary was $75,000. If the Consumer Price Index was 8.1 in 1940 and 100 in 2000, the 1940 presidential salary measured in terms of the purchasing power of the dollar in 2000 would be
A) less than $75,000. 
B) less than $400,000. 
C) approximately $668,850. 
D) approximately $750,000. 
E) approximately $926,000.

The Nominal Salary Paid to the President of the United