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A “closed economy” is an economy in which

,

A “closed economy” is an economy in which

(a)

the money supply is fully controlled

(b)

deficit financing takes place

(c)

only exports take place

(d)

neither exports nor imports take place

Answer:

(d)

Core Books/NCERT

Explanation

A closed economy neither exports nor imports goods and services. It is completely self-contained without any foreign trade or financial transactions.