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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
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 8 aldas to buy 1 bordo, with everything else unchanged. Which of the following statements is correct? A. The alda has appreciated in nominal terms. B. The alda has depreciated in real terms. C. The bordo has appreciated in nominal terms. D. None of the choices is correct. E. The bordo has appreciated in real terms
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