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A ‘closed economy’ is an economy in which :
Question

A ‘closed economy’ is an economy in which :


A.

 the money supply is fully controlled


B.

deficit financing takes place


C.

only exports take place


D.

neither exports or imports take place

Correct option is D

  • A closed economy is one that has no trading activity with outside economies. Closed economy is therefore entirely self-sufficient, which means no imports come into the country and no exports leave the country.

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