Please answer the question below. Thank you! Prime Interest Rate RisesBusiness Investment FallsM1 Rises at Faster RateM1 Rises More SlowlyGDP Rises FasterGDP Rises More SlowlyBusiness Investment RisesPrime Interest Rate FallsStep 2Monetary policy does not always work as well as the Federal Reserve would like.Sometimes one event does not follow from another as expected. As a team, decidewhich headlines may not necessarily follow from the previous one. Put a X throughthese arrows on the previous page. Explain why you ħave placed each X. FED PolicyStep 1On the next page are two sets of headlines that occur when the Federal Reserveuses open market operations. But the headlines are all mixed up. As a group,decide which headline comes first, second, third and fourth. Then fill in the boxesin the correct order.The Federal Open Market Committee tells the New York Federal Reserve Bankto SELL government bondsManetarypolicy-step bystepThe Federal Open Market Committee tells the New York Federal Reserve Bankto BUY government bonds

Sell Government Bonds then When the government sells bonds, then it is the contraction policy where…

Prime Interest Rate Rises Business Investment Falls M1 Rises at Faster Rate M1 Rises More Slowly GDP Rises Faster GDP Rises More Slowly Business Investment Rises Prime Interest Rate Falls Step 2 Monetary policy does not always work as well as the Federal Reserve would like. Sometimes one event does not follow from another as expected. As a team, decide which headlines may not necessarily follow from the previous one. Put a X through these arrows on the previous page. Explain why you have placed each X.