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16 May, 23:50

One difference between a closed and an open economy is that: - in the latter, foreign savings complement domestic savings in financing investment spending. - in the former, foreign savings complement domestic savings in financing investment spending. - in the latter, the government is more open to the idea of financing investment spending than in the former. - in the former, foreign savings finance more investment spending than in the latter.

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  1. 17 May, 00:00
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    in the latter, foreign savings complement domestic savings in financing investment spending

    Explanation:

    In a closed economy, the country does not permit trade with other economies. The nation considers itself self-sufficient hence, it does not require to import or export any goods or services. All products and services produced within the economy are consumed within the boundaries of the country.

    An open economy is the contrast of a closed economy. The country will allow international trade. Goods and services produced in foreign countries will be imported and consumed locally. In an open economy, foreigners are permitted to invest locally.
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