Final answer:
The government's inability to regulate interstate trade under the Articles of Confederation was due to limited power. This led to economic instability and unfair trade relations between states.
Step-by-step explanation:
The problem with the government's inability to regulate interstate trade under the Articles of Confederation was mainly due to limited power of the government. The central government had few powers and lacked authority to resolve commercial disputes between states, negotiate trade agreements with other countries, and enforce treaties. This led to economic instability as states engaged in unfair trade relations and foreign countries refused to make commercial agreements with the United States.