Macroeconomics Relationships

Interest rates go up…

Investments go down

Taxes go up…

Disposable income goes down

Government spending goes up…

National income goes up

MPC goes up…

Spending multiplier goes up

Capital stock goes up…

Growth goes up

Inflation goes up…

REAL wages goes down

Inflation goes up…

REAL interest rates go down

Deficit spending (when expenditures are greater than their revenue; spending more than what one earns) goes up…

Interest rates go up

Money supply goes up…

Interest rates go down

Reserve requirements go up…

Money supply goes down

Discount rate goes up…

Money supply goes down

FED buys bonds…

Money supply goes up

International value of dollar goes up…

US net exports go down

Interest rates go up…

Net capital inflow goes up

Interest rates go up…

Bond prices go down