Suppose the Bank of Canada Fixes the Canada- U

Suppose the Bank of Canada fixes the Canada- U.S. exchange rate between the limits of Cdn$1.10 and Cdn$1.20 to the U.S dollar. If the free- market equilibrium exchange rate would otherwise be Cdn$1.25, then the

A) Federal Reserve System in the Untied States is required to increase the number U.S. dollars circulating in Canada.
B) Bank of Canada needs to engage in expansionary monetary policy to support the dollar.
C) Bank of Canada must sell U.S. dollars.
D) Bank of Canada must buy U.S. dollars.
E) Government of Canada must reduce spending and increase taxes.