The Major Difference Between an Open Economy and a Closed

question 64

Multiple Choice

The major difference between an open economy and a closed economy is that:

• A)an open economy interacts with the rest of the world, a closed economy does not.
• B)a closed economy uses rules rather than discretionary policy, an open economy uses discretionary policy.
• C)an open economy is a market economy while a closed economy relies on central planning.
• D)a closed economy balances budgets, an open economy does not.

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