Suppose the Canadian Economy Is Booming Due to Rising Net

Multiple Choice

Suppose the Canadian economy is booming due to rising net exports and there is political pressure to maintain the "good times." If the Bank of Canada does so by implementing an expansionary monetary policy,it would

A) cause a temporary drop in inflation.
B) decrease the actual inflation rate.
C) cause a permanent recessionary gap.
D) be acting to de-stabilize the economy.
E) decrease employment.