Renee Earned a Salary of $60,000 in 2001 and $80,000

question 161

Multiple Choice

Renee earned a salary of $60,000 in 2001 and $80,000 in 2006.The consumer price index was 177 for 2001 and 221.25 for 2006.Renee's 2006 salary in 2001 dollars is

• A)$45,198; thus, Renee's purchasing power decreased between 2001 and 2006.
• B)$64,000; thus, Renee's purchasing power increased between 2001 and 2006.
• C)$64,000; thus, Renee's purchasing power decreased between 2001 and 2006.
• D)$75,000; thus, Renee's purchasing power increased between 2001 and 2006.

---

Definitions:

Euros

The official currency of 19 out of 27 European Union countries, which is also used in some non-EU countries.

Pounds

A unit of weight commonly used in the United States and British imperial system, equivalent to 0.453592 kilograms, or a unit of currency in the United Kingdom and some other countries.

Exchange Rate

An exchange rate is the value of one currency for the purpose of conversion to another currency.

Rupees

The official currency of India, also used as currency in other South Asian countries, identifiable by the symbol ₹.