Figure 19.1 displays changes in the size of private inventories. ...

[geoffrey]

Figure 19.1 displays changes in the size of private inventories. Based on the figure, in which month is the size of private inventories likely to have been lowest?
 
  A) September 2010
  B) September 2011
  C) September 2009
  D) March 2010

Question 2

If purchasing power parity holds, the exchange rate (e) can be expressed as a function of the domestic price (P) and the foreign price (P) as
 
  A) e = P - P.
  B) e = P - P.
  C) e = P + P.
  D) e = P/P.

[memslove]

Answer to Question 1

D

Answer to Question 2

D