Capital flight is most likely to occur when
A) the value of the domestic currency is depreciating rapidly because of hyperinflation.
B) a country's economic prospects are solid and promising.
C) the value of the domestic currency is appreciating rapidly.
D) the value of the foreign currency is depreciating rapidly.

Question

Quizplus · Accepted Answer

Capital flight is most likely to occur when the value of the domestic currency is depreciating rapidly because of hyperinflation, or when a country's economic prospects are shaky in other respects.

Capital Flight Is Most Likely to Occur When