c. Use the purchasing power of US dollar link to calculate the following: if you have...
c. Use the purchasing power of US dollar link to calculate the following: if you have $100 in 1929, how much money would you need to acquire the same purchase power in 1933? Does that mean the value of US dollar increased or decreased?
Homework Answers
CPI in 1929 = 17.2
CPI in 1933 = 12.9
Money to have same purchasing.power
CPi(in 1933)/CPI(1929). * $100
(12.9/17.2)*100 = $75
Therefore$75 is the answer
Since the real dollar decreased, it means the currency has appreciated or the value of US dollar increases
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