16)The table below shows the price index for Zimbabwe starting in 2000.

Year Price Index

2000 100.0

2001 173.4

2002 404.37

2003 1880.5

2004 8462.2c

2005 28,586.6

2006 319,222.5

Which of the following statementsCORRECTLYdescribe 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