Over What Period of Time Is the Liquidity-Preference Theory Most

Multiple Choice

Over what period of time is the liquidity-preference theory most relevant, and what does it suppose?

A) short run; it supposes that the price level adjusts to bring money supply and money demand into balance
B) short run; it supposes that the interest rate adjusts to bring money supply and money demand into balance
C) long run; it supposes that the price level adjusts to bring money supply and money demand into balance
D) long run; it supposes that the interest rate adjusts to bring money supply and money demand into balance