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Income<br />
Your income statement shows where your gold comes from. The income from trade is<br />
summarized. If you want to check how much a particular route is making, just roll your<br />
mouse pointer over the Merchant.<br />
All happy citizens pay taxes. If you raise the tax level, you will collect more but you will<br />
have more unhappy citizens who don’t pay taxes. As a result, you should be careful<br />
when you raise the taxes, because you can occasionally lose money. On the other<br />
hand, if your citizens are excessively happy, you could raise the tax level and greatly<br />
increase your income. Excessive happiness is an profitable luxury. If your income is<br />
greater than your expenses, your profit is shown in green.<br />
Expense<br />
The expenses part of your income statement shows all regular money outflows. The<br />
upkeep for your knights is one of the major expenses. The upkeep is progressive, so<br />
for each additional knight in a profession, you will pay more. This means that having<br />
three Marshals will cost almost twice as much as having a Marshal, a Cleric and a<br />
Spy. Members of your Royal Family don’t require upkeep, so use them as wild cards.<br />
You incur expenses if you import resources or if you have to pay vassalage or religious<br />
fees. If your expenses are more than your income, your loss is shown in red.<br />
Inflation<br />
The most important expense is inflation. It appears when the gold in your treasury<br />
is much greater than the gross income of your kingdom. You can avoid inflation by<br />
spending some of the gold in your treasury or by increasing your income. Please note<br />
that inflation takes your income into account, so even if you are operating at a loss, a<br />
sufficiently high income will still prevent inflation.<br />
Piety<br />
Piety is a resource that quantifies the religious fervor possessed by your kingdom<br />
and your subjects. It is produced in town-based churches and cathedrals, as well<br />
as in monasteries/mosques. You need to spend piety for many religious and state<br />
activities.<br />
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