If Mustard Now Costs $0

question 115

Multiple Choice

If mustard now costs $0.75 when today's price index is 225,and if the price index in 1970 was 38,we would most accurately say that

• A) mustard cost about $4.44 in 1970.
• B) if mustard cost $0.10 in 1970,it was relatively cheap as an inflation-adjusted price.
• C) mustard cost about $0.20 in 1970.
• D) mustard's price would never increase at the same rate as inflation because it is a food item.
• E) ketchup would cost about $0.13 in 1970 because it typically costs about the same as mustard.

Apply mathematical operations to solve practical problems in finance.

Understand and apply basic arithmetic operations and properties to solve real-world problems.

Calculate and analyze the impact of sales taxes on retail transactions.

Compute and interpret the average cumulative investment over a time period.

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Definitions:

Alger Hiss

An American government official accused in 1948 of being a Soviet spy and convicted of perjury in connection with this charge, his case became a cause célèbre of the early Cold War.

Perjury

The intentional act of swearing a false oath or lying under oath during legal proceedings.

New Deal

A series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States during the 1930s to help the country recover from the Great Depression.

Post-War Boom

A period of strong economic growth and prosperity in the aftermath of a major conflict, notably after World War II.