Question

What are the concept of open and close economy

Answer 1

Answer:

A closed economy is one that does not interact with other economies in the world. There are no exports, no imports, and no capital flows. An open economy is one that interacts freely with other economies around the world. An open economy interacts with other countries in two ways.

Answer 2

Answer:

An open economy is a type of economy where not only domestic actors but also entities in other countries engage in trade of products (goods and services). ... It contrasts with a closed economy in which international trade and finance cannot take place.