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LM curve from money demand
Let $M^d (Y,r)=a+bY-cr$ where $M^d = M/P$ is the money demand in the economy. $a,b,c>0$. Derive $LM$.
My try
$M/P=a + b Y - c r$
$b Y = -a + \frac{M}{P} + c r$
$Y = -\frac{a}{b} + \frac{M}{b P} + \...
user31331
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What would be the consequences of universal parity of buying power (wage value) and freedom to buy?
I've wondered about this for many, many, years..... maybe there's an answer (or several answers?) after all.
As the global economy is set up, one reason a person in the US and EU can afford a nice ...
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