Refer to Figure 11.5. An increase in the level of investment is best illustrated by diagram

A tax wedge:

A. only occurs in markets when taxes are placed on large corporations. B. only occurs in markets when the tax is placed on buyers. C. refers to the difference in the price the buyer pays and the price the seller keeps. D. only occurs in markets when the tax is placed on sellers.

In the market for bank reserves, if the federal funds rate target is higher than the federal funds rate, the Fed will take action to ________ reserves.

Fill in the blank(s) with the appropriate word(s).