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    Question

    In a “closed economy”-

    A Residents are not allowed to travel abroad Correct Answer Incorrect Answer
    B Entry of foreigners is not allowed Correct Answer Incorrect Answer
    C There is no import and export Correct Answer Incorrect Answer
    D There is no export but import is allowed Correct Answer Incorrect Answer
    E There is no budget deficit 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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