Question

If CPI was 108 in 1985 and 130 in 1990 (base year 1982-1984 = 100)

-the purchasing power of the dollar would have been the same in 1985 and 1990.
-the purchasing power of the dollar in 1985 would have been greater.
-the purchasing power of the dollar in 1990 would have been greater.
-we do not have enough information to know what would have happened to the purchasing power of the dollar.

I say its 3rd answer, but I just be sure

Answer 1

Prices went up from 85 to 90 (as measured by the cpi). Ergo, the purchasing power of the doller in 85 was greater. That is, a doller in 85 could buy more than a dollar in 90.