Concept:Inflation is controlled by reducing the money supply in the economy.
Explanation:When inflation rises, excess money is available with the public.
The central bank sells government securities, such as treasury bills, in the open market.
This action mops up surplus cash from the economy.
As a result, purchasing power declines and aggregate demand falls.
Hence, inflation is brought under control.
Encouraging bank lending or increasing government expenditure would add more money, making inflation worse.
Buying treasury bills would inject money, not remove it.
Answer:D. selling securities in the open market.