Final answer:
The value of the 2023 average income in 1938 dollars is calculated using the consumer price index of both years. By applying the formula, the 2023 average income of $75,000 corresponds to option d. $3,500 in 1938 dollars.
Step-by-step explanation:
The student has asked to calculate the value of the average income in 2023 in terms of 1938 dollars using the Consumer Price Index (CPI) for those years. To do this, we can use the formula for comparing different years' CPI values: (Value in Year X dollars) = (Value in Year Y dollars) * (CPI in Year X / CPI in Year Y). According to the provided data, the average income in 2023 is $75,000, the CPI in 2023 is 300, and the CPI in 1938 was 14.
Using the formula, we get: Value in 1938 dollars = $75,000 * (14 / 300) = $3,500. Therefore, the value of the 2023 average income in 1938 dollars would be $3,500 and the correct answer is (d) $3,500.