Which of the Following Events Would Justify the Bank of Canada

Multiple Choice

Which of the following events would justify the Bank of Canada implementing an expansionary monetary policy,while maintaining its commitment to its inflation target?

A) an appreciation of the Canadian dollar due to increases in the world prices of Canadian exports
B) a depreciation of the Canadian dollar due to persistent current account deficits of Canada
C) an oil-price shock that drives up Canadian inflation
D) the U.S.economy increasing its demand for Canadian goods and services
E) a major decline in the Canadian stock market index