Assume that the central bank of a country raises the federal funds rate. Which of the following accurately describes the impact of this action on the economy?

A) The contractionary monetary policy will have no effect on the aggregate demand in the economy.
B) The contractionary monetary policy will raise the aggregate demand in the economy.
C) The expansionary monetary policy will reduce the aggregate demand in the economy.
D) The expansionary monetary policy will raise the aggregate demand in the economy.
E) The contractionary monetary policy will reduce the aggregate demand in the economy