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Variables	Small Business (Increase)	Investors (Increase)	Small Business (Decrease)	Investors (Decrease)
Interest rate	Overall spending decreases; saving increases due to higher returns on investments from higher bank rates.	Lucrative to save and invest for a higher ROI.	Lower interest rates increases consumer/business consumption and spending.	Investors will increase investments and capital purchases because borrowing costs are cheaper at lower prime rate.
Minimum wage	Labor chooses to work more as cost of leisure rises.	Employers will hire less and invest in capital to reduce labor costs.	Labor prefers to work less and obtains skills for higher wages.	Employers hires more employees and increases service quality.
Tax rate	Small business deductions supports small businesses. Reduces foreign investment.	Investment tax deductions attract investors. Discourages foreign investment.	Lower taxes increase business and individual net income, but may reduce budget for public goods.	May increase foreign investment, but reduces public welfare.
Social benefits	Increases public satisfaction and standard of living.	Boosts public welfare, reducing investor utility such as less demand in insurance and etc..	Lowers standard of living and public goods.	Creates investment opportunities, increasing investor utility.

Assumption: changes in policies will provide equilibrium in the long run.

Other theories to consider:

• Income Effect
• Substitution Effect
• Liquidity Trap
• Minimum Wage Price Floor Model
• Determinants of Foreign Investment (market size, stability, infrastructure, productivity)
• Demand-side effects of social benefits (increased consumption and economic stability)
• Macroeconomic conditions and investor expectations
• Keynesian Economics