When a government decides to limit the number of goods that can be sold to another nation, that government is creating

monetary policy

trade policy

fiscal policy

regulatory policy

trade policy

The correct answer would be option B, Trade Policy.

Explanation:

The government of a country is responsible for formulating the monetary policy, trade policy, fiscal policy and the regulatory policy of the country. If a government decides to limit the number of goods that can be sold to another nation, that government is basically creating a Trade Policy, because a trade policy is the agreement or regulation which controls the imports and exports of a country. So to sell the products to other nations means exporting the products, and exporting comes under the trade policy. So the appropriate answer to the given question is trade policy.