If the price index in 2017 was 244, the purchasing power of a dollar measured in terms of the base year was _____
A) $2.38.
B) $0.24.
C) $0.41.
D) $4.10.
E) $1.00.

Question

Quizplus · Accepted Answer

The price index in 2017 is 244, which means that prices on average are 244% higher than in the base year. To find the purchasing power of a dollar in terms of the base year, we can divide 100 (the value of a dollar in the base year) by the price index. 
100/244 = 0.4098, which rounded to two decimal places is $0.41. Therefore, the answer is C, $0.41.

If the Price Index in 2017 Was 244, the Purchasing