Draw an aggregate demand diagram to illustrate an increase in AD, and one that shows a decrease in AO. Be sure to label the axes accurately. Decide whether each of the following factors would lead to an increase or a decrease in AD and write out the point beneath the appropriate diagram. In each explanation, explain which component[s] of AO is likely to be affected and why. Example: A fall in income tax is likely to lead to an increase in AD because consumers' disposable incomes will rise, leading to an increase in consumption, ceteris paribus. 

1. a fall in house prices 

2. a rise in consumer confidence 

3. an increase in foreign incomes 

4. a fall in the consumer confidence index 

5. a decrease in interest rates.