Suppose Canadian Real GDP Is Equal to Potential GDP

Suppose Canadian real GDP is equal to potential GDP. A significant and sustained appreciation of the Canadian dollar would likely lead the Bank to engage in a contractionary monetary policy if the Bank's policy experts traced the cause of the appreciation to

A) a reduction in Canada's core inflation rate.
B) a decrease in the overnight lending rate.
C) an increase in the desire of non- residents to purchase Canadian financial assets.
D) a recession in Canada.
E) an increase in the desire of non- residents to purchase more Canadian goods and services.