Concept:Inflation is controlled by reducing the amount of money circulating in the economy.
Explanation:The government can reduce excess money supply by selling securities in the open market.
When the government sells securities, people pay money to buy them.
This money is taken out of circulation, leaving the public with less cash to spend.
As a result, aggregate demand falls, and price levels stabilize.
Buying securities, encouraging imports, or encouraging bank lending would instead increase money supply and worsen inflation.
Answer:B. selling securities in the open market.