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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 the price level in Aldaria increases by 10%, while in Borduria the price level increases by 20%. Which of the following statements is correct? O A. The bordo has depreciated in real terms. OB. The alda has appreciated in real terms. OC. The alda has depreciated in nominal terms. OD. The bordo has appreciated in real terms. O E. None of the choices is correct
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