7. a. Suppose nations attempt to pursue independent monetary and fiscal policies. How will exchange rates behave? Why? (Explain it also with the trilemma and exchange rate regime choice.) (8%) b. What costs and benefits are associated with the 19 nations that use Euro as their common currency? (8%) 8. What is the difference between Euro System and European Union? What is the difference between European Central Bank and European System of Central Bank? (8%)