True / False

1.According to Woods, interest rates are not arbitrary numbers but rather perform a coordinating function for the production of goods across time.

2.Woods argues that when the Fed jolts money into the banking sector to push down interest rates, it isn't solving our problems but rather it is causing them.

3.Woods contends that what we should be doing during a depression is to increase the money supply in order to get people back to spending.

4.To illustrate the problem of unsustainable investment, Woods cites the example from Mises of the bridge builder that runs out of material before reaching the other side of a river.

5.Taylor argues that there is nothing about a market system that would lead to the problems of a general recession or depression.

6.Taylor shows that inflation is a symptom of the business cycle and not its root cause.

7.If we shift our preferences from future goods to present goods then the interest rate will fall.

8.Taylor argues that a continuous policy of credit expansion will not have any effect on prices in general.

9.Once the malinvestments have been revealed, the adjustment process takes place which requires rather large price increases; that is, further inflation.

10.Mises referred to the collapse of the monetary system as the "crack-up boom."

11.Krugman argues that if Austrians were right we should be seeing accelerating inflation during recessions, as the supply of goods has fallen but not so the money supply.

12.Krugman agrees with the Austrian view that investment is "damaged" during the economic boom (due to artificially low interest rates).

13.To illustrate his example of capital consumption during a recession, Murphy used a tale of villagers and their consumption of pizza.

14.Murphy challenges Krugman's assertion that the fall in employment was worse in manufacturing than in construction by noting that on a proportional basis that wasn't the case.

15.Keynes' solution to the Great Depression was to boost Aggregate Demand.

16.In the rap video Hayek wants to steer the markets while Keynes wants them set free.

17."The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design" is a quote attributed to Hayek.

18.In the sequel rap video much of the action takes place on a basketball court.

19.Hayek gets into trouble by explaining that his name is pronounced like "high explosives."

20.Among the "cut men" for the boxers were Say, Malthus and Mises.

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Tom Woods on the ABCT on YouTube:

http://www.youtube.com/watch?v=5K4Os5eXPw4

Inflation and the Business Trade Cycle (Chapter 8 only; pdf available):

https://mises.org/library/introduction-austrian-economics

Great Leap Backwards - Krugman Commentary:

https://krugman.blogs.nytimes.com/2011/01/19/great-leaps-backward/?_r=0

My Reply to Krugman on Austrian Business Cycle Theory - Bob Murphy:

https://mises.org/library/my-reply-krugman-austrian-business-cycle-theory

Keynes v. Hayek rap video - Fear the Boom and the Bust:

https://www.youtube.com/watch?v=d0nERTFo-Sk

Keynes v. Hayek rap video - Fight of the Century:

https://www.youtube.com/watch?v=GTQnarzmTOc&t=5s