Using equations (1) - (4), characterize the change in Yt in response to a change in the expected inflation rate e t 1, i.e., derive an expression for Yt e t 1 . (5 points) b. The central bank's policy goal is to stabilize Yt. Derive a simple expression for the required change in Mt in response to an increase in e t 1. (1 point) c. Illustrate the effect of the change in e t 1 and the policy response in terms of the change in the money supply using two panels: as in section 1 of chapter 24 of the textbook, one panel plots the relationship between Mt and rt and the second panel illustrates the relationship between Yt and rt (i.e., the LM curve). (2 points