选项B

问题如下：

Question

The most likely reason for a country to encourage foreign direct investment while heavily restricting foreign investment in liquid domestic assets is to:

选项：

A.prevent capital flight. B.generate an increase in the domestic interest rate. C.stabilize the production capacity of the domestic country.

解释：

Solution

A is correct. Capital flight occurs when foreign investment in liquid domestic assets suddenly decreases. Restricting foreign investment in liquid domestic assets and encouraging foreign direct investment (i.e., investment in illiquid domestic assets) prevents capital flight.

B is incorrect. Restricting foreign investment in liquid domestic assets will keep the domestic interest rate from rising.

C is incorrect. Foreign direct investment increases the production capacity of the domestic country.