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Does monetary policy affect the sale and purchase of the iPhone 6 plus in a negative...

Does monetary policy affect the sale and purchase of the iPhone 6 plus in a negative manner? Does monetary policy affect the sale and purchase of the iPhone 6 plus in a positive manner? Give at least 5 sentences for each question.

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Answer #1

Monetary policy could affect the sale and purchase of iPhone 6 plus in both positive and negative manner depending on the nature of the policy that is in operation. If the monetary policy is expansionary in nature, then increase in money supply would increase the prices in the market affecting the sale of iPhone 6 plus as fewer people will buy because of increased prices, while if the policy was contractionary, the opposite would have occured. If the route of following an expansionary mometary policy was through a reduction in repo rates which would have further increased the credit supply in the market leading to lesser interest rates and have resulted in an increase in sale and purchase of iPhone6 plus on credit or EMI.

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