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

1.50 marks per pound

Step-by-step explanation:

Data provided in the question:

Selling price of three-wheel cars made in North Edsel = 5000 pounds

Selling price of four-wheel cars made in south Edsel = 10,000 marks

Real exchange rate between North and South Edsel

= four three-wheel cars for three four-wheel cars

i.e

⇒ 4 × 5000 pounds  = 3 × 10,000 marks

or

1 pounds = [ ( 3 × 10,000 ) ÷ ( 4 × 5,000) ]

or

1 pound = 30,000 ÷ 20,000

or

1 pound = 1.50 marks

Hence,

The nominal exchange rate = 1.50 marks per pound