Given that the cpi in 1970 was 38.8. the cpi in 2007 was 207.3. the purchasing power of $50,000 in 1970 was more than purchasing power of $200,000 in 2007.
What is purchasing power?
This is the term that is used to refer to the tangible goods that can be gotten at the present value of a currency.
From the question, the rate of inflation in 1970 was less than 2007 so the currency had more value and less money could buy more than what can be purchased in 2007.
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