Question

What role does money and influence play in the phantom luncheon?

Answer 1

Money plays an important role in any monetary economy, since it exerts some influence on prices, the level of economic activity, interest rates, among other important variables. In turn, the behavior of these variables affects the decisions taken by the different economic agents. This is why it is very important to know the role of money and the financial system in the economy and the way in which the economy is affected by them.