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1 decision to lower rates

2. money supply increase

3 demand for capital goods increase

4 pressure the fed to increase money supply

5 malinvestment

6 capital goods boom

7 consumer goods boom

8 economy becomes less liquid

9 bank awareness default rates increase

10 cash crunch

11 inverse field curve banks actually increase rates

12 cluster of errors

13 liquidation

14 deflation

15 banks unable to find able and willing

16 cleansing out process

14

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Q: What are the 16 steps or points of the Austrian Theory of the Trade Cycle?
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