Part C (20 marks} Answer only TWO questions from Part C in one SEPARATE examination book. Do not answer questions on this examination paper. a. What is the Lucas critique? Why does it matter? Illustrate your answer with references to a famous episode in U.S. monetary history. {1U marks] b. Using your knowledge from this course. assess the extent to which the European lll'lonetaryr Union is a Successful system of fixed exchange rates in comparison with the United States of America. {10 marks} 1:. What is the caSe against floating exchange rates? In your answerI make use of the models and concepts presented in this course. [113 marks] d. When is fiat money eSSential as a medium of exchange? Is the OLE model usaful to think about fiat money? Explain. (10 marks]