If Canadian Policy-Makers Wish to Maintain the Value of the Dollar

Multiple Choice

If Canadian policy-makers wish to maintain the value of the dollar relative to the U.S.dollar,what should they do?

A) Keep the money supply constant
B) Continually adjust the money supply to keep interest rates in line with American rates
C) Increase the money supply whenever the U.S.dollar starts to appreciate against the Canadian dollar
D) Purchase American dollars