| Interest rate |
Spending decreases; savings increase due to higher credit card and bank rates. |
Lucrative to save and invest for a higher ROI. |
Lower interest rates increase consumer consumption and spending. |
Investors increase investments and capital purchases. |
| Minimum wage |
Labor chooses to work more as cost of leisure rises. |
Employers hire less and invest in capital. |
Labor prefers to work less, retaining skills for higher wages. |
Employers hire more employees. |
| Tax rate |
Small business deductions and incentives retain businesses. |
Investment tax deductions attract investors. |
Lower taxes increase profit but may reduce public goods budget. |
May increase foreign investment but reduce public welfare. |
| Social benefits |
Increases public satisfaction and standard of living. |
Boosts public welfare, reducing investor utility. |
Lowers standard of living and public goods. |
Creates investment opportunities, increasing investor utility. |