A policy that raises taxes or reduces government spending is called 1. a contractionary monetary policy 2 a contractionary fiscal policy 3. an expansionary monetary policy 4. an expansionary fiscal policy A reserve ratio of 0.10 means that a bank can lend an amount equal to 1. 10 percent of its deposit liabilities 2. 10 percent of its excess reserves 3. 90 percent of its deposit liabilities 4. 90 percent of its excess reserves