In order to control inflation, the government should?

A. reduce the cost of borrowing
B. buy securities in the open market
C. adopt a restrictive monetary policy
D. discourage savings

Correct Answer: Option C

C. adopt a restrictive monetary policy

Explanation

One popular method of controlling inflation is through a contractionary monetary policy. The goal of a contractionary policy is to reduce the money supply within an economy by decreasing bond prices and increasing interest rates.