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sure, setting and character are the same thing
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the implication is that if mood is the character of the place then those sentences that set mood are advancing character.
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Some authors rarely describe a place objectively. We see a space through the eyes of the characters - and in doing so, we learn about our characters as we learn about the space they inhabit.
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sure, if a character is in some narrative role; however I would argue that no author ever describes a place objectively, especially not a completely fictional place. The question really is if the unobjective description serves a coherent narrative purpose.
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