An economy that does not have interactions in trade or finance with other economies is referred to as
A)an open economy.
B)a closed economy.
C)a trade-balanced economy.
D)a net foreign investment economy.

Question

Quizplus · Accepted Answer

A closed economy is one that does not engage in trade or financial transactions with other economies. This means that all economic activity takes place within the boundaries of the country, with no imports or exports, and no foreign investment or borrowing. In contrast, an open economy is one that is integrated into the global economy through trade and financial flows.

An Economy That Does Not Have Interactions in Trade or Finance