Multiple Choice
Suppose in the year 2000 Ken earned $60,000 per year and that in 2015 he earned $78,000 per year.If the CPI in the year 2000 was 172.2 and in 2015 was 236.7,which of the following statements is correct?
A) Ken's standard of living got better from 2000 to 2015.
B) If Ken had earned $81,000 in 2015,his standard of living would have improved relative to his income in 2000.
C) Ken would have needed to earn $87,000 or more in 2015 for his standard of living to have improved relative to his income in 2000.
D) If Ken had earned $83,000 in 2015,his standard of living would have improved relative to his income in 2000.
Correct Answer:
Verified
Correct Answer:
Verified
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