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e)Suppose that US Federal Reserve implements a contractionary monetary policy that leads to higher interest rates in the US. At the same time the US

e)Suppose that US Federal Reserve implements a contractionary monetary policy that leads to higher interest rates in the US. At the same time the US economy is experiencing an expansion. Can one use this information to predict what will happen to the USD/AUD exchange rate? Explain your reasoning carefully. (2 marks)

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