Question

Compile a PowerPoint presentation to demonstrate your ability to provide a comprehensive presentation on the following:

• How does an increase in fiscal policy affect consumers' ability to purchase the iPhone 6 plus?
• How does a decrease in fiscal policy affect consumers' ability to purchase the iPhone 6 plus?
• 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?

Answer 1

First we discuss meaning of fiscal policy and then understand how fiscal policy affect consumer ability to purcahse the iphone 6 plus.

As we know fiscal policy refers to a policy through which the government changes and adjusted its spending levels and tax rates.

1. Increase in fiscal policy means either government increase its spending or decrease its taxes or do both. If Government decrease the tax rate it means that more money in the hands of the people in the form of disposal income and Hence consumer have ability to purchase the iphone 6 plus.

On the other hand if government increase spending it means the generation of more employment. More emloyment means increase in the demand for goods and service as well as iphone 6 plus.

2. Decrease in fiscal policy means either government decrease its spending or increase its tax rate or do both. If Government increase the tax rate it means less money in the hands of the people in the form of disposal income and hence consumer ability to buy iphone 6 plus decreases.

On the other hand if government decrease spending it means the more unemployment. More unemployment means decrease in the demand for goods and services as well as iphone 6 plus.

First we discuss meaning of monetary policy

Monetary policy is control by the central bank of the country. Monetary policy control the money supply in the market by the making changes in the interest rate and selling and buying of government securities.

3 How monetary policy affect negative sale and purchase of the iphone 6 plus.

If goverment increase the rate of interest it causes decreae in the money supply in the market, it causes less spending, production and employment. All these things causes less money in the hands of the people. Hence we can say that by increase rate of interest put negative affect on sale and purchase of iphone 6 plus.

4 How monetary policy affect positive sale and purcahse of the iphone 6 plus.

If government decrease the rae of interest it causes increase in the money supply in the market, it helps more spending, production and employment. All these things causes more money in the hands of the people. Hence we can say that by decrease rate of interest put positive affect on sale and purchase of iphone 6 plus.