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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