Question

Closed economy is one in which ____________.

• A. Only export takes place
• B. Money supply is fully controlled
• C. Deficit financing takes place
• D. Neither export nor import takes place

Answer 1

The correct option is D Neither export nor import takes place

Closed economy framework defines an economy which has no trade interaction with other nations. The closed economy does not undertake any kind of export or import activities and is self-reliant with regard to fulfilling the need and demand of the nation.