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Ignore the previous questions. One can exchange the currencies of Aldaria and Borduria at the rate 10 aldas/1 bordo. The price level in Aldaria is
Ignore the previous questions. One can exchange the currencies of Aldaria and Borduria at the rate 10 aldas/1 bordo. The price level in Aldaria is 50, while in Borduria the price level is 80. Suppose it now takes 11 aldas to buy 1 bordo, the price level in Aldaria increases by 20%, and the price level in Borduria increases by 10%. Which of the following statements is correct? O A. None of the choices is correct. OB. The alda has appreciated in nominal terms, but depreciated in real terms. O C. The alda has appreciated in nominal terms, and also appreciated in real terms. OD. The alda has depreciated in nominal terms, but appreciated in real terms. O E. The alda has depreciated in nominal terms, and also depreciated in real terms
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