Multiple choice

A “closed economy” is an economy is which

  1. the money supply is fully controlled

  2. deficit financing takes place

  3. only exports take place

  4. neither exports nor imports take place
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

An economy that does not interact with the economy of any other country. A closed economy prohibits imports and exports, and prohibits any other country from participating in their stock market.

Keep practicing — related questions