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Given Below Is the Scatter Plot of the Price/earnings Ratio

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Given below is the scatter plot of the price/earnings ratio versus earnings per share of 20 U.S. companies. There appears to be a negative relationship between price/earnings ratio and earnings per share.
Given below is the scatter plot of the price/earnings ratio versus earnings per share of 20 U.S. companies. There appears to be a negative relationship between price/earnings ratio and earnings per share.


Definitions:

Excess Reserves

Bank reserves in excess of the required minimum, which can be lent out or invested.

Total Reserves

The sum of all deposits, including cash, bank deposits, and investable assets, held by a financial institution or country.

Required Reserves

The minimum amount of reserves a bank must hold, as mandated by regulatory bodies, based on a percentage of the bank's deposit liabilities.

Money Supply

The total quantity of money available in the economy at a given time, including currency, deposits, and other liquid assets.

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