Let the real money demand in the economy equal LD = 10 + 2Y – 8r. The price level P is fixed at P = 1. Y is the level of output and r is the rate of interest. What is the LM curve for this economy?

Let the real money demand in the economy equal LD = 10 + 2Y – 8r. The price level P is fixed at P = 1. Y is the level of output and r is the rate of interest. What is the LM curve for this economy?

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