Which of the following is a primary characteristic of Keynes' liquidity preference theory correlating nominal income and nominal money demand?

A negative correlation would suggest that as nominal income rises, the demand for money decreases, which contradicts Keynes' theory. In fact, higher nominal income typically leads to greater spending needs, resulting in increased money demand rather than a decrease.

Claiming there is no correlation implies that changes in nominal income have no effect on money demand. This stance opposes Keynesian economics, which clearly illustrates the dependence of money demand on income levels through the liquidity preference framework.

An equal correlation would suggest that changes in nominal income and money demand occur at the same rate, which is not a characteristic defined by Keynes. While both variables move together, the nature of their relationship is not equal but rather positively correlated, emphasizing that as income changes, the demand for money adjusts accordingly but not necessarily at the same magnitude.