If the United States were a closed instead of an open economy, the economic effects of the Iraq War would be felt:
A) more by U.S. consumers.
B) by trading partners with the United States.
C) less by U.S. consumers.
D) by the world.

Question

Quizplus · Accepted Answer

In a closed economy, the United States would not engage in international trade, meaning the economic impacts of events like the Iraq War would be absorbed internally. This would lead to U.S. consumers feeling the effects more directly, as the economy would not have the buffer of international trade to mitigate impacts.

If the United States Were a Closed Instead of an Open