For this question, you will answer how interest rates change due to business cycle recession using the two economic theories we covered: The asset market approach and liquidity preference theory. Please start with the asset market approach and follovur the questions. Part I: Using the asset market approach of bonds, how interest rates change due to business mle recession. 1] Draw the initial bonds market for the asset market approach analysis. For the graphs, please make sure to indicate all the axis and curves. Label the initial equilibrium as "1\". 2] Now, let's suppose that there is an expectation of the business gcle recession in the near future. [Please note that this is our current concern!) Change the graph accordingly. Indicate any changes in the graph and label them clearly. Label the new equilibrium as \"2". I: Hint: the size ofthe movement in supply:- the size ofthe movement in demand} 3] Then, explain [in writing) what happens to the price of bonds, therefore the interest rate? Part II. Now, by using the liquidity preference model [money market], you need to explain the movement of interest rate clue to business recession. The scenario is the same as Part I. 4] Draw the initial money market approach analysis. For the graphs, please make sure to indicate all the axis and curves. Label the initial equilibrium as \"1\". 5] Now, le_t_'_s_ suppose that there is an expectation of the business gcle recession in the near future. [There will be no policy involved.) Change the money market graph accordingly. Indicate any changes in the graph and label them clearly. Label the new equilibrium as "2\". 6] Then, explain [in writing) what happens to the money market andI thereforeI the interest rate? 7] Is your analysis consistent throughout the bonds and money markets? What is your conclusion on the interest rates change with the economic recession? Economists say that the interest rates {without any policies injected} are \"pro-cyclical" rising when the economy is expanding and falling during recessions. Do you agree with this argument based on you r