A policy that raises interest rates and reduces borrowing is called:

1. Raising rates makes borrowing dearer and slows spending. 2. That is the opposite direction from the expansionary stance. 3. A policy that raises interest rates and reduces borrowing is contractionary. 4. It also goes by the name tight monetary policy. _Source: OpenStax Principles of Macroeconomics 3e (CC BY 4.0), Ch 15 'Monetary Policy and Bank Regulation', sections 15.1-15.5_