Suppose that the real demand for money is given by M. = 0.4Y -50r The price level P is equal to P=5 And the Nominal Money supply is given by M = 1040 1. Derive the LM curve and Graph it 2. Use the IS curve derived in Problem 1 question 1 and find the equilibrium interest rate as well as the Income level equilibrium . 3. Use the IS curve derived in problem 1 question # 2 and find the new equilibrium of interest rate as well as the new equilibrium of Income . What happen to the level of interest rate and the level of income due the increase in taxes by the government