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.