If There Were No Transaction Costs and Property Rights Were

question 259

True/False

If there were no transaction costs and property rights were always well-defined, there would be no external costs after trade.

---

Definitions:

Change The Tax Rate

Altering the percentage at which income, property, or sales are taxed by a governmental entity.

Discount Rate

The interest rate charged to commercial banks and other financial institutions for the loans they take from a country's central bank or Federal Reserve.

Monetary Policy Tool

Mechanisms used by central banks to manage the money supply and interest rates in order to influence economic activity and inflation.

Open Market Operations

Central bank activities involving the buying and selling of government securities in the open market to control the supply of money and interest rates.