Question

role of money in capitalistic economy​

Answer 1

Answer:

It is, it fact, competition between consumers and producers which equalises the demand and supply of both goods and services in a capitalist economy. ... Since such an economy functions without any government interference, money plays a crucial role in maximising the wants of consumers and profits of produce

Thus money helps in the circular flow of goods and services in a socialist economy. To conclude, the role of money in a socialist economy may be less important as compared to a capitalist economy due to state regulation and control. Nevertheless, it helps in fixing prices, wages, incomes and profits.

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Answer 2

Answer:

It is, it fact, competition between consumers and producers which equalises the demand and supply of both goods and services in a capitalist economy. ... Since such an economy functions without any government interference, money plays a crucial role in maximising the wants of consumers and profits of producer