Cache and Effect
And L3 cache is faster than L2, and L2 is faster than L1.
It's the other way around, the lower the level the cache the closer to the cpu core it is and the faster it is.
Level 1 is by far the fastest and the difference in speed between level 2 and level 3 is not as significant as between lvl1 and lvl2.
It's memory which is far faster than RAM and reduces cpu idle time as it waits on data being retrieved from RAM and other slower media.
The affect it has depends on the program, however more is typically better.
CPU efficiency is greater with increased cache, modern CPUs have features such as prefetch to have required instructions loaded into the cache ahead of time ready for execution. It gets technical with the many implementations used by CPUs today. A great way of improving a cpu's efficiency is to improve the utilization of cache ensuring the CPU is constantly supplied with instructions.

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