What does Keynes's liquidity preference theory predict about the relationship between interest rates and the velocity of money?

A. As interest rates rise, people will reduce their money holdings and therefore velocity will decrease.
B. As interest rates rise, people will increase their money holdings and therefore velocity will decrease.
C. As interest rates rise, people will reduce their money holdings and therefore velocity will rise.
D. As interest rates rise, people will increase their money holdings and therefore velocity will rise.

Keyne's Liquidity Preference Theory states that the demand for money is not to borrow money but instead is the desire to remain liquid. According to my research on this theory, I can say that based on the information provided within the question as interest rates rise, people will reduce their money holdings and therefore velocity will rise.

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