1. Could "trasladar" be used instead of mudar?
2. Since the subject of the story has taken a decision to move [herself] to another city, would the pronominal form mudarse / trasladarse be appropriate?
Freeform Writing Exercise B2
mudarse and trasladarse are interchangeable when referring to move house, change job, leave a city to go to another city..., so you can say "Me mudé de casa" or "Me trasladé de casa" but "mudarse" is a lot more common when implying "just moving house". If you are talking about leaving a city to go to another or leaving a job to go to another in a different place, we tend to use more "trasladarse", for example: "Me tuve que trasladar a Nueva York para trabajar en ese proyecto". I think trasladar doesn't always imply a permanent move the same way mudarse does. But they are pretty much interchangeable. I added trasladarse as another possible correct answer in that exercise.
In terms of using them as pronominal verbs, yes, both mudar and trasladar need the reflexive pronoun. You can't say "Mudé /Trasladé a Nueva York" or "Mudé de casa/de trabajo".
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