The Major Difference Between an Open Economy and a Closed

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.