Question
An equation is given by M d (Y,r) =M 0 +M 1 Y M 2 r M d = M/P M and P are exogenous
An equation is given by
Md(Y,r) =M0 +M1Y M2r
M d = M/P
M and P are exogenous variable and M0, M1, M2 > 0. and Md is the money / liquidity demand in the economy
The question is that how do I derive the LM curve, i.e. discharge Y as a function of r and M/P?
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Financial Accounting Making The Connection
Authors: J David Spiceland, Wayne Thomas, Don Herrmann
1st Edition
0077862260, 9780077862268
