In the Liquidity-Preference Model, a Decrease in People's Incomes Causes

Multiple Choice

In the liquidity-preference model, a decrease in people's incomes causes

A) both the nominal interest rate and the equilibrium quantity of money to increase.
B) the nominal interest rate to increase and the equilibrium quantity of money to decrease.
C) the nominal interest rate to decrease and the equilibrium quantity of money to remain unchanged.
D) both the nominal interest rate and the equilibrium quantity of money to decrease.