The CPI in 1990 was 131, and the CPI in 2010 was 218. If you earned a salary of 40,000 in 1990, what would be a salary with equivalent purchasing power in 2010?
A) 45,977 B) 66,565 C) 87,200 D) 143,486
Question 2
Refer to Figure 19-5. The Chinese government pegs the yuan to the dollar, at one of the specified exchange rates on the graph, such that it overvalues its currency. Using the figure above, this would generate
A) a shortage of yuan equal to 500 million. B) a shortage of yuan equal to 100 million.
C) a surplus of yuan equal to 700 million. D) a surplus of yuan equal to 200 million.
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