• 1. In a scenario where a country implements a policy of significant quantitative easing to stimulate a stagnant economy, but also introduces stringent environmental regulations that increase production costs for major industries, what is the most likely short-term impact on the country's trade balance? 

  2. A) Improvement in the trade balance due to increased exports from quantitative easing. 

     B) Deterioration of the trade balance due to reduced competitiveness from higher production costs. 

     C) Stabilization of the trade balance as the effects of quantitative easing offset the impact of environmental regulations. 

     D) No significant change in the trade balance, as domestic consumption increases to match the rise in production costs.

     
     
     

     
     
     

     
     
     

     
     

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