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

Question 21 options:

1)	the nominal interest rate to increase and the equilibrium quantity of money to decrease.

2)	both the nominal interest rate and the equilibrium quantity of money to increase.

3)	the nominal interest rate to decrease and the equilibrium quantity of money to remain unchanged.

4)	both the nominal interest rate and the equilibrium quantity of money to decrease.