The correct answer is:
C) Reduce the money supply
One method of having control of inflation is by a contractionary monetary policy. A contractionary policy reduces the money supply within an economy by decreasing bond prices and increasing interest rates. This helps reduce spending because when there is less money to go around, those who have money want to keep it and save it, instead of spending it.
Deregulation of the banking industry
Deregulation allowed savings and loans to pursue riskier investments than they had before. Coupled with this is that Reagan's budget cutting measures also reduced staffing at the Federal Home Loan Bank Board, which was responsible for regulations that were in place.