When the Bank of Canada wants to stimulate the economy, it 0 A. lowers its policy instrumentsthe exchange rate and investmentto stimulate aggregate demand. 0 B. raises the money supply, its policy variable, to stimulate investment and aggregate supply. 0 C. conducts an open-market purchase to stimulate aggregate demand. 0 D. raises its policy instrumentthe exchange rate. 0 E. lowers its only policy instrumentthe overnight interest rate targetto inuence aggregate demand. Suppose that the Bank of Canada is trying to eliminate a recessionary gap by changing the money supply. One of the consequences of this action on the Canadian dollar exchange rate is O A. an increase of investor condence in the Canadian economy, which will lead to an appreciation of the Canadian dollar. 0 B. a decrease in interest rates, which will raise domestic investment and result in capital inows and an appreciation of the Canadian dollar. 0 C. a depreciation of the Canadian dollar, which will lead to an increase in net exports. O D. an increase in interest rates, which will depreciate the Canadian dollar and raise exports, O E. a depreciation of the Canadian dollar, which will lead to a reduction in exports