Question 70 2 pts Which of the following statements is true of the Federal Reserve? Choose two a) It sets a target for GDP growth in order to achieve its goal of a specific federal funds rate. b) It sets a target for the federal funds rate in order to achieve its goal managing the GDP Gap. c) It conducts open market operations with Treasury securities (or repurchase agreements) in order to maintain the federal finds rate within a targeted range. d) It borrows and lends in the federal funds market in order to achieve a target yield on Treasury bonds. e) It sets a target for GDP growth in order to achieve its goal of a specific unemployment rate. Question 72 2 pts Federal Reserve chairman Powell recently testified before Congress. He said (though not in these words) that the Fed will likely accelerate its tapering (liquidity reduction) due to the reduction in the GDP Gap. What did he mean? a) The gap between nominal and real interest rates has widened. b) The interest rate gap for U.S. banks has worsened. c) The gap between household earnings and spending has widened (i.e., the savings rate has risen). d) The gap between potential and actual GDP has narrowed. O e) The difference between imports and exports (the trade deficit) has increased