Suppose the Canadian Economy Is Booming Due to Rising Net

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