it's true. In an open economy, both domestic investment and net capital outflow drive the need for loanable money. A market that is open to competition has little to no restrictions on how businesses can operate.
An open economy is a form of economy in which organizations from other nations exchange goods in addition to those produced domestically (goods and services). Management interchange, technological transfer, and the exchange of a wide range of commodities and services are all examples of trade. There are some exceptions that cannot be swapped; for instance, a country cannot trade its railway services with another nation in order to use the service. In contrast, a closed economy forbids the conduct of both foreign commerce and finance. Exporting is the process of selling products or services to another nation. Importing is the process of purchasing products or services from another nation. International trade is the term used to describe both importing and exporting.
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