Question

Which is the correct answer????

Many economists estimate that the total monetary costs including continuing financial support for veterans of the Iraq War to be approximately $3 trillion (or $3,000 billion) in today’s dollars. We can compare this spending on the Iraq War with spending on another costly war that lasted from 1941-1945. According to the Congressional Research Service, total U.S. spending on World War II including continued veteran support was $321 billion (in 1945 dollars). Calculate U.S. spending on WW II in today's (2019)dollars?

Question 5 options:

	$4.56 trillion
	$14.33 trillion
	$8.56 trillion
	$22.6 trillion

Answer 1

Spending in 1945 = $321 billion

Spending now = $3 trillion

CPI in 1945 = 18

CPI nw = 255.66

CPI have grown by 255.66 / 18 = 14.2 times since 1945 till now.

Thus, spending now in WW2 in today's dollar would be 14.2 times of $321 billion which is $4.56 trillion.

Option A is correct.