i \text { Assume that } M=6000, P=2.0, \text { and } \pi^{3}=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 n^e = 0.03. Compare the LM curve in this case with the one in Part (a).
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