| VARIABLES | SMALL BUSINESS (Increase) | INVESTORS (Increase) | SMALL BUSINESS (Decrease) | INVESTORS (Decrease) |
|---|---|---|---|---|
| Interest rate | Spending will decrease, and savings will increase with higher credit card & bank rates. | Will be lucrative to save and invest for a higher rate of return on investment. | A lower credit card interest rate will increase consumer consumption and increase spending. | Investors will increase investments and make capital purchases. |
| Minimum wage | The labor force will choose to work as cost of leisure increases. | Will hire less and spend on capital. | Labor force will prefer to work less and retain skills to obtain higher wages. | Will choose to hire more employees. |
| Tax rate | Small business deduction and other incentives will retain small businesses. | There are investment tax deductions to attract investors and increase investment. | A lower tax rate will increase business profit and budget on public goods would decrease. | Will increase foreign investment. However, would reduce public welfare. |
| Social benefits | Increases public satisfaction and standard of living | Increases public welfare and reduce budget that increases investor's utility. | Will lower standard of living, public goods and public utility. | Would create investment opportunities and increase investor's utility. |
Edited May 3, 2025
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