Concept:To control inflation, the government must reduce the money supply in the economy.Explanation:Inflation rises when there is too much money chasing too few goods.The government uses a restrictive (or contractionary) monetary policy to lower the money supply.This policy increases interest rates and reduces borrowing and spending.Buying securities in the open market, reducing the cost of borrowing, or discouraging savings would all increase spending and worsen inflation.Answer:The government should adopt restrictive monetary policy.Correct option: C.