Suppose Canadian real GDP is equal to potential GDP. A significant and sustained appreciation of the Canadian dollar would likely lead the Bank to engage in a contractionary monetary policy if the Bank's policy experts traced the cause of the appreciation to

Select one:

a. a reduction in Canada's core inflation rate.

b. a recession in Canada.

c. an increase in the desire of non-residents to purchase Canadian financial assets.

d. an increase in the desire of non-residents to purchase more Canadian goods and services.

e. a decrease in the overnight lending rate.

Clear my choice