Step 1: Understanding the Concept
Concentration is moles per volume. Halving the volume doubles every concentration.
Step 2: New rate
Original: \(r = k[A]^{2}[B]\).
New: \(r' = k(2[A])^{2}(2[B]) = 8\,k[A]^{2}[B]\).
Step 3: Result
\(r' = 8r\), so the rate increases eight times.
Final Answer:
The rate of reaction increases eight times.
\[ \boxed{\text{(C) }\text{increased by eight times}} \]