The formula for dilations with center at origin is
Likewise when
*k > 1, the dilation is an enlargement
*k < 1, the dilation is a reduction
*k = 1, the dilation is a congruence
So, in this case, you have
Then, the dilation of the polygon is a reduction.
Now, finding the new coordinates of the polygon, you have
Therefore, the correct answer is C. A'(0,2), B'(-2,4), C'(1.5,1.5), D'(2,-1): Reduction.