Which type(s) of economics interact with other economics? a

Economics Dec 14, 2020

Which type(s) of economics interact with other economics?

a. Only closed economics

b. Only open economics

c. Closed economics and open economics

d. Neither closed nor open economics

Expert Solution

Only open economy interact with each other because these are the economy which are engaged in exports and imports mathematically it can be expressed as

Closed economy

Y = C + I + G

Open economy

Y = C + I + G + X - M

Where

X - M = net exports

So option b is correct

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