[Solved] The table given below shows the assets and liabilities of the National Bank. Assume that this is the only bank in the economy. Table 13.2 \(\begin{array}{c} \text { Balance Sheet of National Bank }\\ \quad\quad\quad\text { Assets } \quad\quad\quad\quad\quad\quad\quad\quad \text { Liabilities }\\ \begin{array}{|c|c|c|c|} \hline\text { Vault Cash } & \$ 1,725 & \text { Deposits } & \$ 5,450 \\ \text { Deposit in Fed } & \$ 425 & & \\ \text { Loans } & \$ 3,300 & & \\ \hline \text { Total Assets } & \$ 5,450 & \text { Total Liabilities } & \$ 5,450\\ \hline \end{array}\end{array}\) -Refer to Table 13.2. If the Fed increased the reserve requirement from 10 percent to 25 percent, the money supply in the whole banking system could now potentially: A) decrease by $12,900. B) decrease by $1,272.50. C) increase by $7,875. D) decrease by $7,875. E) increase by $3,150. Benign: Describing a condition, tumor, or growth that is not cancerous and is less likely to pose a serious threat to health. Arteriosclerotic Heart Disease: A form of heart disease caused by the hardening and narrowing of the arteries, affecting blood flow. Medical Abbreviation: Shortened forms of words or phrases used in medical contexts to save time and space in documentation. Neuralgia: Severe pain along the course of a nerve, often due to changes in nerve structure or function.