When we derived the LM curve, an assumption we made was that the money supply was fixed. Since the 1990s, the Federal Reserve has abandoned the policy of targeting money supply. Instead, it targets the nominal interest rate. In other words, it allows money supply to move freely to keep the interest rate unchanged. Given this new policy, what does the LM curve look like? Derive the new LM curve. Use two diagrams to show the derivation, similar to (but not the same as) what we did in class.