An "open" economy is one in which:
A) the level of output is fixed.
B) government spending exceeds revenues.
C) the national interest rate equals the world interest rate.
D) there is trade in goods and services with the rest of the world.

Question

Quizplus · Accepted Answer

An open economy refers to an economy that engages in trade with the rest of the world, which involves the exchange of goods and services with foreign countries. Therefore, the correct option is D.

An "Open" Economy Is One in Which