If the price index in 2015 was 238, the purchasing power of a dollar measured in terms of the base year was _____
A) $2.38.
B) $0.24.
C) $0.42.
D) $4.20.
E) $1.00.

Question

Quizplus · Accepted Answer

The purchasing power of a dollar measured in terms of the base year can be calculated by dividing the base year index (usually 100) by the current year index and multiplying by 1 dollar. Therefore, the purchasing power of a dollar in 2015 would be (100/238) x 1 = $0.42.

If the Price Index in 2015 Was 238, the Purchasing