The purpose of a restrictive monetary policy is to alleviate recessions. raise interest rates and restrict the availability of bank credit. increase aggregate demand and GDP. increase investment spending.

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.