Question

'Closed Economy' is that economy 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

The closed economy is that economy in which neither imports nor exports take place in that particular country. As the name suggests the country provides the consumers with everything they need from within the country’s economy.