Assume that nominal GDP = PY, and L-bar = the proportion of nominal income that the nation holds (demands) as money to cover its transactions. Because nominal money supply equals nominal money demand, then: A. increases in nominal income cause a 1-for-1 increase in the demand for real money. B. decreases in nominal income cause a proportional increase in the demand for real money. C. decreases in nominal income cause a 1-for-1 increase in the demand for nominal money . D. increases in nominal income cause a proportional increase in the demand for real money. Reset Selection