A closed economy is one in which:

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A closed economy is one that doesn't participate in international trade and is therefore isolated from foreign trade. It means that there are no imports or exports, and domestic production is consumed within the economy. Option A refers to a balanced trade, but not necessarily a closed economy. Option B describes an open economy where domestic firms invest in foreign industries, and option D defines a situation of equilibrium in the goods and services market, but not necessarily a closed economy.

A Closed Economy Is One in Which