The Phenomenon of Capital Flight Is Most Likely to Occur

Multiple Choice

The phenomenon of capital flight is most likely to occur when

A) the recovery phase of an economic depression nears its end.
B) the value of the domestic currency depreciates rapidly because of hyperinflation.
C) a country's economic prospects are stable and indicate growth.
D) interest rates are low for a prolonged period of time.
E) governments lift convertibility restrictions on their currency.