Aggregate Demand

Small questions about AD :
State whether each factor is likely to increase or decreases the level of aggregate demand for the UK economy (other factors remaining the same).

1 - The government decrease the rate of income tax from 22% to 20% . The lower income tax will boost the power of buying of consumers, so it will increase the most important component of AD - consumption >> It will increase the level of AD
2 - There is a 20% fall in average UK house prices over a two year period. The reduction of house prices will cause the fall in Consumer wealth, reduce the power of buying >> It will decrease the level of AD
3 - There is a consumption boom in the countries of the Euro Zone. The increase of demand in exports will inflow the demand into circular flow of income and spending >> Increase the level of AD
4 - The exchange rate between sterling and the Euro appreciates by 15% (i.e. goes up in value) over the course of a year . The lower level of exchange rate will make the price of export cheaper >> Reduce the AD
5 - A new survey finds that business confidence has hit a 5-year low. The lower of expectation of the producer will narrow the amount of small firms, reduce level of capital investment>> Lower level of AD
6 - The government announces a £400m plan to build a series of wind farms across the UK . The more increase in Capital Investment, the more increase level in AD
7 - Consumers decide to increase their savings ratio . Reduction in consumption will decrease the level of AD
8 - Bank of England signals rise in interest rates of ½% . The rise in IR will decrease the borrowers to invest >> decrease in Capital Investment >> Decrease in AD level
9 - The government increases government spending by £1 billion but raises the amount it takes in income tax by £1 billion . It's uncertain to consider the change in AD.
10 - Chancellor announces tax exemption scheme on new investments for small to medium sized businesses. The encourage of the government to boost the investments will increase the level of AD.