If the nominal exchange rate between the dollar and the euro is $1 = €0.70, and the price of an 8.4 oz. can of Red Bull is $1.75 in the United States and €1.40 in Germany, the real exchange rate between the dollar and the euro is
A) 1.25 cans of Red Bull in Germany per can of Red Bull in the United States.
B) 0.80 cans of Red Bull in the United States per can of Red Bull in Germany.
C) 0.875 cans of Red Bull in Germany per can of Red Bull in the United States.
D) 0.56 cans of Red Bull in Germany per can of Red Bull in the United States.
C
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