Yay for engineering studies finally helping for something.
The more carbon the more cementite (Fe<sub>3</sub>C) forms, this forms in phases with ferrite, to form pearlite up to .8% carbon, where all grains consist of pearlite.
Basically it will get harder, more brittle, loses a specific yield point (and goes to a progressive yield), less tensile, it also becomes denser (as carbon doesnt replace iron it takes in gaps between the structure.
In a steel under .8% (above that it gets slightly more complex) inside the grain the cementite acts as a cathode, whereas the ferrite phase is anodic, this corrodes and then the cementite due to its brittleness snaps off.
This also happens between the pearlite grains and ferrite grains.
Above .8% you form a cementite precipitate which generally stops corrosion around the grain boundries (areas of high stress). Then you get into the cast irons which is different again.