Table 143 Monetary Aggregates of the U Assume an Original Balance Sheet: in Table 14

Table 14.3 Monetary Aggregates of the U.S.Financial System
$\begin{array}{|l|r|}\hline{\text { Item }} & \text { Amount } \\\hline \text { Cash held by public } & \$ 40 \text { billion } \\\hline\text { Transactions deposits } & \$ 80 \text { billion } \\\hline\text { Required reserves } & \$ 20 \text { billion } \\\hline\text { Excess reserves } & \$ 0 \text { billion } \\\hline\text { U.S. bonds held by public } & \$ 125 \text { billion }\\\hline \end{array}$
Assume an original balance sheet: In Table 14.3,if the Fed changes the required reserve ratio to 10 percent,the lending capacity of the system would eventually

A) Increase by $12 billion.
B) Increase by $120 billion.
C) Decrease by $12 billion.
D) Decrease by $120 billion.