Suppose that the CPI is currently 200 and was 40 in 1950. Then, according to the CPI, $1 in 1950 purchased the same amount of goods and services as what amount today?

Name: Suppose that the CPI is currently 200 and was 40 in 1950. Then, according to the CPI, $1 in 1950 purchased the same amount of goods and services as what amount today?
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The CPI has increased from 40 to 200, which is a factor of 5 (200/40 = 5). Therefore, $1 in 1950 would purchase the same amount of goods and services as $5 today.

Suppose That the CPI Is Currently 200 and Was 40