Read the following passage:
The overall point of the CPI is to determine what the value of the medium of exchange has in the economy. We go to the grocery store with a budget, and what we were able to buy a year ago may change depending on the value that our medium of exchange holds. Have you ever been told a story from a grandparent about how much they could buy with just one dollar? It is because the medium of exchange has changed in value over time along with the cost of living. The same dollar will no longer purchase the same goods for the same price.
What is the purpose of the text?
Group of answer choices
To introduce and describe CPI.
The medium of exchange has changed in value over time along with the cost of living.
To explain that the same dollar will no longer purchase the same goods for the same price.
1 answer