Why will the “discipline” imposed on governments

Why will the “discipline” imposed on governments by a fixed exchange rate disappear under a floating rate regime be a problem?

A.Tempted to follow over expansionary fiscal policy

B.Tempted to follow over expansionary monetary policy

C.Economy may go into an inflation bias

D.May tempt governments to stimulate the economy to win an election

E.A and C

Answer: E

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