1. Derivation of LM curve In a particular economy the real money demand function is = 3000 + 0.1 10000 Assume that = 6000, P=2.0, and = 0.02. a) What is the real interest rate, r, that clears the asset market when Y=8000? When Y=9000? Graph the LM curve. b) Repeat part a) for M=6600. How does the LM curve in this case compare with the LM curve in part a)? c) Use M=6000 again and repeat part a) for = 0.03. Compare the LM curve in this case with the one in part a)