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Explain the impact on the Canadian dollar's exchange rate if, alternatively: The US central bank, the Federal Reserve, decided to pursue a contractionary monetary policy.

Explain the impact on the Canadian dollar's exchange rate if, alternatively:

  1. The US central bank, the Federal Reserve, decided to pursue a contractionary monetary policy.
  2. The world prices for raw minerals peaked and began to decline.

Which account of the balance of payments would be impacted.

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