To answer the following question, please refer to the figure below. Concentrating only at the lower left quadrant, discuss the relationship between the U.S. real money supply and the dollar/euro exchange rate, E$/E. 
Definitions:
Matching
An accounting principle where expenses are recorded in the period they are incurred to generate revenues.
Ending Inventory
The total value of goods available for sale at the end of an accounting period.
Cost of Goods Sold
The direct costs attributable to the production of the goods sold by a company.
LIFO
A method of inventory valuation called "Last-In, First-Out," where the most recently acquired items are the first to be expensed.
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