The definition of an open economy is that it a. has flexible exchange rates. b. allows private ownership of capital. c. conducts trade with other countries. d. has fixed exchange rates.

The correct answer is C

Explanation:

Open economy is the kind or type of an economy, in which the economic activities among the outside people or business and the domestic community could trade in the services and goods with other people in the international community and the funds could flow as the investments across the border.

In the open economy, the the trade conducts or performed with other countries.