Final answer:
A central bank announcement of a program to raise rates to moderate inflation will lead to decreased borrowing and investment.
Step-by-step explanation:
The correct answer is b) Decreased borrowing and investment.
When a central bank announces a program to raise interest rates, it is implementing a contractionary monetary policy. This means that it aims to decrease borrowing and investment in order to moderate inflation.
Higher interest rates make borrowing more expensive and less attractive for businesses and individuals. As a result, they are less likely to take out loans for investment and other purposes, leading to a decrease in borrowing and investment.