• Question

      Closed economy is an economy in which? 

      A Physical borders are fully sealed Correct Answer Incorrect Answer
      B Money supply is controlled by the government Correct Answer Incorrect Answer
      C Fiscal deficit is zero Correct Answer Incorrect Answer
      D Export import is not allowed Correct Answer Incorrect Answer
      E Import is not allowed Correct Answer Incorrect Answer

      Solution

      A closed economy is self-sufficient, meaning no imports are brought in and no exports are sent out, the goal being to provide consumers with everything they need from within the economy's borders. A closed economy is the opposite of an open economy, in which a country conducts trade with outside regions.

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