Assertion (A) : in Liquidity Trap, the Demand for Money

Multiple Choice

Assertion (A) : In liquidity trap, the demand for money is perfectly interest elastic. Reason (R) : Because in this situation, all the investors expect the market rate of interest to rise towards the natural rate of interest. Codes :

A) (a) & (r) both are correct and (r) is the correct explanation of (a)
B) (a) & (r) both are correct, but (r) is not the correct explanation of (a)
C) (a) is correct, but (r) is incorrect.
D) both (a) and (r) are incorrect.