A person pays cash for a house in 1990 for $200 000 and sells it in 2000 for $400 000.Over the same period the CPI has risen from its base index to 200.In terms of this asset,the purchasing power of this person:
A) has increased
B) has decreased
C) has remained unchanged
D) is indeterminate.
E) depends on his/her spending habits.
Correct Answer:
Verified
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