Look again at Table 28.4. George and Bruce each have an equal share in a trust fund that provides them with an income of US$100,000 a year. George lives in Seattle, but Bruce emigrated to Sydney in 1983. What has happened to George?s real?income since 1983? What was Bruce?s income in 1983 in Australian dollars? What was it in 2000? What has happened to Bruce?s real?income?

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Consumer Price Index: 1983 = 100 Foreign Exchange Rate, AS/USS Australia United States 1983 1.108 100 100 1984 1.137 104 104 1985 1.427 1.491 111 108 110 1986 121 1987 1.427 131 114 1988 1989 1.275 1.262 141 117 151 121 1990 1.280 163 125 1991 1.284 1.360 168 129 1992 169 132 1993 1.470 172 134 1994 1.287 175 138 1.342 1.255 1995 184 142 1996 189 146 1997 1.532 189 149 1.633 1.524 1998 191 158 1999 193 158 2000 1.799 202 163