The correct option is (b) Vertical
According to liquidity preference theory, the money-supply curve is vertical.
According to the Liquidity Preference Theory, investors should expect a higher interest rate or premium for riskier securities with extended maturities because, when all other things are equal, they favor cash or other highly liquid investments.
In economics, the premium that wealth holders seek when trading in quick cash or bank deposits for safe, non-liquid assets like government bonds is known as the "liquidity preference."
Learn more about the liquidity preference with the help of the given link:
https://brainly.com/question/13017356
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