Managing the economy through expansionary and contractionary monetary policy has been a standard practice in the United States since the 1940's when the concept was first introduced by economist John Maynard Keynes. Contractionary monetary policies and expansionary monetary policies involve changing the level of the money supply in a country. Expansionary monetary policy is simply a policy which expands (increases) the supply of money, whereas contractionary monetary contracts (decreases) the supply of a country’s currency. During a slow economy, such as a recession, policymakers often endorse expansionary monetary policy to stimulate economic activity, mainly by keeping interest rates low by adding money to the system through its open market to encourage borrowing by companies, individuals and banks. Thus, causing unemployment to decline because companies find it easier to borrow money to expand their operations creating more jobs, consumers tend to spend more money and businesses such as Apple enjoy increased revenues and profits. This allows companies to update plant and equipment assets and to hire new employees. Expansionary monetary policy will help Apple’s Iphone in the short run mainly because when more consumers are working which improves the economy, consumers are willing to spend money on buying products such as the Iphone; boosting more sales. (Moffatt, 2011) On the contrary, inflation can be a result of expansionary monetary policy if the economy is too strong and creates too much money. Inflation occurs when there is so much money chasing available goods and services that the money loses its value in relation to the products it purchases. This results in higher prices for the limited products because buyers are in effect competing to buy them and the highest price paid wins. Expansionary monetary policy also restricts deflation, which