A Closed Economy Is One in Which

question 24

Multiple Choice

A closed economy is one in which:

• A) Imports exactly equal exports,so that trade is balanced
• B) Domestic firms invest in industries overseas
• C) The home economy is isolated from foreign trade
• D) Saving exactly equals investment at full employment

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Definitions:

Defense Mechanism

Psychological strategies employed unconsciously to protect a person from anxiety arising from unacceptable thoughts or feelings.

Denial

A defense mechanism in which confrontation with a reality or problem is avoided by denying the existence of the problem or reality.

Physiological Stability

Refers to the body's ability to maintain a stable internal state despite external changes.

Addiction

A chronic, relapsing disorder characterized by compulsive drug seeking, continued use despite harmful consequences, and long-lasting changes in the brain.