The correct answer is: A. It is causal and stable.
A causal system is a system whose output depends only on the present and past inputs, not on future inputs. In this case, the output $y[n]$ is defined only for $n \ge 0$, so it is causal.
A stable system is a system whose output does not grow without bound as the input goes to infinity. In this case, the output $y[n]$ is bounded for all $n$, so it is stable.
The other options are incorrect. Option B is incorrect because the system is not stable. Option C is incorrect because the system is causal. Option D is incorrect because the system is both causal and stable.