Multiple choice

Directions: Choose the correct option for the given question: ‘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 one that has no interaction with the rest of the world - meaning neither exports nor imports take place. All economic activity is contained within the country's borders.

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