The LM*curve:Money Market Eq'm M/P L(r*,Y) The LM*curve ■is drawn for a given LM* value of r* ■is vertical because: given r*,there is only one value of r that equates money demand with supply, regardless of e. CHAPTER 12 Aggregate Demand in the Open Economy slide 7 slide 7 The LM* curve § is drawn for a given value of r* § is vertical because: given r* , there is only one value of Y that equates money demand with supply, regardless of e. Y e LM* M P  L(r * ,Y ) 1