Why is raising the interest rate on reserves considered a contractionary monetary policy?
A. It causes banks to lower their prime interest rate in response.
B. It makes it more expensive for businesses to hire new employees.
C. It prevents investors from withdrawing their money from banks.
D. It encourages banks to keep money in reserve instead of lending
it.

D. It encourages banks to keep money in reserve instead of lending

Explanation:

If the central bank raises interest rates on reserves, it means that commercial banks will have more incentive to hold more money in reserves, which also means that they will have less funds to loan out. If commercial banks make less loans, they create less money, leading to a reduction of the money supply, and this is why this policy is considered to be contractionary.

- "sack of constantinople, (april 1204). the diversion of the fourth crusade from the holy land to attack, capture, and pillage the byzantine city of constantinople divided and dissipated the efforts of the christians to maintain the war against the muslims. the fourth crusade was corrupted from its purpose early on."

- "the crusades were a series of religious wars undertaken by the latin church. the first crusade arose after a call to arms in 1095 sermons by pope urban ii. the first crusade unleashed a wave of impassioned, pious catholic fury, which was of constantinople, the capital of the christian-controlled byzantine empire."

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your answer is rising unemployment and inflation.