Answer:
The correct answer is: raise interest rates and restrict the availability of bank credit.
Explanation:
A restrictive monetary policy is also known as contractionary monetary policy. It aims to decrease the aggregate demand by reducing the supply of money in the economy.
It involves a number of tools that raise the interest rate and make borrowing expensive. In this way, it restricts liquidity in the economy.
There are a number of tools that can be used to implement this policy, for instance, sale of securities in the open market, increasing discount rates, increasing reserve ratio, etc.
