Three-wheel cars made in North Edsel are sold for 5000 pounds. Four-wheel cars made in South Edsel are sold for 10,000 marks. The real exchange rate between North and South Edsel is four three-wheel cars for three four-wheel cars. The nominal exchange rate between the two countries is
A. 0.50 marks/pound.
B. 1.50 marks/pound.
C. 0.66 marks/pound.
D. 2.00 marks/pound.
Answer: B
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