Inflation control and monetary management

Option (a) is incorrect because inflation control is a shared responsibility between the government (through fiscal policy) and the RBI (through monetary policy). Option (b) is incorrect because the RBI plays a crucial role in controlling inflation through its monetary policy tools. Option (d) is incorrect because increased money circulation typically increases inflation, not reduces it. Option (c) is correct: decreased money circulation reduces the money supply in the economy, which helps control inflation by reducing aggregate demand and price pressures. This is a core monetary policy principle. > Key Insight: Less Money Supply = Lower Inflation (Contractionary Monetary Policy). More Money Supply = Higher Inflation (Expansionary Monetary Policy). Answer: (c).