_____ 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.
A)The bandwagon effect
B)The Fisher Effect
C)The International Fisher Effect
D)Capital flight

Question

Quizplus · Accepted Answer

Capital flight is the most likely to occur when the value of the domestic currency is depreciating rapidly due to hyperinflation or when a country's economic prospects are uncertain. Capital flight refers to the movement of money out of a country by both domestic and foreign investors, which can lead to a further decline in a country's currency and economic instability.

_____ Is Most Likely to Occur When the Value of the Domestic