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Investing and Financial Markets

Question 10 • Personal Finance - EL3403

If the government decides to limit the number of goods that can be traded with another nation, the government creates .

Answer
A
monetary policy
B
trade policy

Explanation

Limiting how many goods can be traded with another nation is a restriction on international trade. Government decisions about imports and exports, including limits such as quotas, are part of trade policy; monetary policy concerns money, interest rates, and the money supply.

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