How is the purchasing power of the dollar computed?
A) ($1/CPI) (100)
B) ($1 - CPI) (100)
C) ($1 $\times$ CPI) (100)
D) (CPI/$1) (100)
E) ($1 + CPI) (100)

Question

Quizplus · Accepted Answer

The purchasing power of the dollar is computed as ($1/CPI) * 100. This formula shows how much a dollar is worth in terms of goods and services at a given point in time compared to a base period, with the Consumer Price Index (CPI) serving as the measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

How Is the Purchasing Power of the Dollar Computed? A) ×\times×

How Is the Purchasing Power of the Dollar Computed?
A) $\times$