explain the significace of money
Answers
Answer:
The following are some of the advantages of money which show that money plays a vital and significant role in the modern economy:
Classical economists thought that money is a just veil and does not affect the real volume of goods and services in the economy, that is, the level of national product. According to them, money only affects the price level in the economy with no effect on the levels of real income and employment.
They contended that what we really want was goods and services which satisfy the wants of the people and promote their welfare. Therefore, according to them, we must go behind the veil of money to see changes in the total output of goods and services or in real income.
Explanation:
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