If the Consumer Price Index is 172.2 (2002 = 100), what is the purchasing power of the dollar?
A) $1.00
B) $0.33
C) $0.58
D) $0.50
E) $0.72

Question

Quizplus · Accepted Answer

The purchasing power of the dollar is calculated as 1 divided by the index number (in this case, 172.2) and then multiplied by 100. So, 1 / 172.2 * 100 = 0.58. This means that the purchasing power of the dollar, compared to 2002, is $0.58.

If the Consumer Price Index Is 172