Taylor's nominal income is $50,000 per year in Acity where the cost-of-living index is 200. Taylor is considering accepting a similar job and relocating to Becity where the cost-of- living index is 210. For Taylor's income to have the same purchasing power in Becity as $50,000 has in Acity, then Taylor's nominal income per year in Becity must equal: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a $50,000. $52,100.
Taylor's nominal income is $50,000 per year in Acity where the cost-of-living index is 200. Taylor is considering accepting a similar job and relocating to Becity where the cost-of- living index is 210. For Taylor's income to have the same purchasing power in Becity as $50,000 has in Acity, then Taylor's nominal income per year in Becity must equal: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a $50,000. $52,100.
Chapter17: Capital And Time
Section: Chapter Questions
Problem 17.3P
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Question
![Taylor's nominal income is $50,000 per year in Acity where the cost-of-living index is 200.
Taylor is considering accepting a similar job and relocating to Becity where the cost-of-
living index is 210. For Taylor's income to have the same purchasing power in Becity as
$50,000 has in Acity, then Taylor's nominal income per year in Becity must equal:
Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an
answer.
a
$50,000.
b
$52,100.
C
$52,500.
d.
$55,000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F85686bbb-e247-4efb-b217-e34bd3b6aede%2Fd2d82a34-bb11-470d-b9d7-43dcb9db009e%2Fdadc1w9_processed.png&w=3840&q=75)
Transcribed Image Text:Taylor's nominal income is $50,000 per year in Acity where the cost-of-living index is 200.
Taylor is considering accepting a similar job and relocating to Becity where the cost-of-
living index is 210. For Taylor's income to have the same purchasing power in Becity as
$50,000 has in Acity, then Taylor's nominal income per year in Becity must equal:
Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an
answer.
a
$50,000.
b
$52,100.
C
$52,500.
d.
$55,000.
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