As the interest rate falls, o a. the quantity of money demanded falls, which would reduce a surplus. o b. the quantity of money demanded rises, which would reduce a surplus. o c. the quantity of money demanded falls, which would reduce a shortage o d. the quantity of money demanded rises, which would reduce a shortage. figure 35-2 use the pair of diagrams below to answer the following questions. ia refer to figure 35-2. if the economy starts at c and 1, then in the short run, a decrease in aggregate demand moves the economy to a. d and 3. o b. e and 3 ° c. a and 2. d. none of the above is correct.