True or False: A BMW car costs $40,000 this year, but only $8,000 in 1980. It’s more expensive today than in 1980 to buy a BMW.” (Suppose PCE price index is 30 and 120 in 1980 and 2023, respectively.)

True or False: A BMW car costs $40,000 this year, but only $8,000 in 1980. It’s more expensive today than in 1980 to buy a BMW.” (Suppose PCE price index is 30 and 120 in 1980 and 2023, respectively.)

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter17: Capital And Time

Section: Chapter Questions

Problem 17.3P

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True or False: A BMW car costs $40,000 this year, but only $8,000 in 1980. It’s more expensive today than
in 1980 to buy a BMW.” (Suppose PCE price index is 30 and 120 in 1980 and 2023, respectively.)

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