10
QuizMultiple Choice

Inflation and Purchasing Power

Question 10 • 26-27 Ignite Financial Literacy Personal Finance - EL3403

A notebook costs $2.65 when the CPI is 182. In 1983, how many notebooks could you buy with $18?

Answer
A
twenty
B
fifteen
C
twelve
D
six

Explanation

The CPI of 182 means prices are 1.82 times their 1983 level. So the notebook’s 1983 price was about $2.65 ÷ 1.82 = $1.46. With $18, you could buy $18 ÷ $1.46 ≈ 12.3 notebooks, or 12 whole notebooks. The correct choice is “twelve.”

AI-written and checked against the verified answer.

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