If a nation has an open economy it means that the nation ?
Correct answer: D. conducts trade with other countries
- A. Allows private ownership of capital
- B. Has flexible exchange rates
- C. Has fixed exchange rates
- D. conducts trade with other countries
Explanation
An open economy participates in international trade in goods and services. Private ownership and the choice between fixed or flexible exchange rates do not by themselves define an open economy.
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