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Three-Wheel Cars Made in North Edsel Are Sold for 5000

Question 42

Multiple Choice

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) 0) 66 marks/pound.
C) 1) 50 marks/pound.
D) 2) 00 marks/pound.

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