Multiple choice

'Closed economy' is that economy in which

  1. only export takes place

  2. money supply is fully controlled

  3. deficit financing takes place

  4. neither export nor import takes place
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A closed economy is self-sufficient, meaning that no imports are brought in and no exports are sent out. The goal is to provide consumers with everything that they need from within the economy's borders.

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