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Question 2 Given two LM equations, namely Y = 3 0 0 0 + 1 0 0 0 r and Y = 5 0 0

Question 2
Given two LM equations, namely Y=3000+1000r and Y=5000+1500r :
a) Calculate the slope of both the LM curve.
b) Based on the values of r=5% and r=10%, draw both the LM curves in one diagram.
c) Which LM curve will give a better impact on the growth of an economy if there is an
increase in the interest rate? Explain.
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