The CPI in 1970 Was 38

question 50

Short Answer

The CPI in 1970 was 38.8 and in 1998 the CPI was 163.0. If the real value of a 1970 gallon of milk in terms of 1998 dollars is $0.70, what was the nominal price of milk in 1970?

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Definitions:

Non-Current Assets

Assets intended to be held for more than one financial period, such as property, plant, and equipment, intangible assets, or long-term investments.

Financial Structure

Refers to the mix of debt and equity finance used by a company to finance its operations and grow.

Machinery

Equipment or devices designed for a specific purpose, often used in manufacturing or industrial processes.

Investing Activities

Transactions and events that relate to the investment of the company’s cash, including acquisitions and disposals of long-term assets and other investments not included in cash equivalents.