The Table Below Shows the Price Index for Zimbabwe Starting

question 359

Multiple Choice

The table below shows the price index for Zimbabwe starting in 2000. $$\begin{array} { | c | c | } \hline \text { Year } & \text { Price Index } \\\hline 2000 & 100.0 \\\hline 2001 & 173.4 \\\hline 2002 & 404.37 \\\hline 2003 & 1880.5 \\\hline 2004 & 8462.2 \\\hline 2005 & 28,586.6 \\\hline 2006 & 319,222.5 \\\hline\end{array}$$
www.econstats.com
Which of the following statements correctly describe the behavior of prices in Zimbabwe?
i. The cost of the CPI basket increased.
iI. The inflation rate was 73.4 percent between 2000 and 2001.

• A) I only
• B) II only
• C) both I and II
• D) neither I nor II

---

Definitions:

APC

The Average Propensity to Consume calculates the portion of income that families allocate towards consumption as opposed to savings.

United States

A country located in North America, known for its large economy and diverse population, consisting of 50 states and a federal district.

United States

A country located primarily in North America, consisting of 50 states and a federal district, known for its large economy and diverse population.

Savings Rate

The proportion of disposable income that is saved by an individual or household instead of being spent.