…as opposed to just a user? To put it another way, if a user installs an app, will it always be added to the environment such that all other users can use it (assuming they’ve been given permission)?
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Short answer: yes. Installed applications (AppExchange, or other) are always installed on a full Salesforce environment. However, User Profiles, Permission Sets, or Licenses may restrict access to the application.
If the installed application is licensed, and the User has a license, and the User’s Profile has access to the necessary objects, tabs, code, etc., they will be able to use the installed app. By limiting permissions, an installed app can be completely hidden from Users.