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55. Ruben earned a salary of $60,000 in 2001 and $80,000 in 2006. The consumer price index was 177 in 2001 and 221.25 in 2006.
55. Ruben earned a salary of $60,000 in 2001 and $80,000 in 2006. The consumer price index was 177 in 2001 and 221.25 in 2006. Ruben's 2001 salary in 2006 dollars is
a.$75,000; thus, Ruben's purchasing power increased between 2001 and 2006.
b.$75,000; thus, Ruben's purchasing power decreased between 2001 and 2006.
c.$85,000; thus, Ruben's purchasing power increased between 2001 and 2006.
d.$85,000; thus, Ruben's purchasing power decreased between 2001 and 2006.
Please explain why the answer is a. Thank you.
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