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12.65% Herald of Steel / Chapter 192: Ten Commandments

章節 192: Ten Commandments

Alexander took economics in his A levels and there he learned something called the multiplier effect and this was something critical to the functioning of an economy.

Seeing the understandably befuddled faces of the much senior men, Alexander decided to teach this complex topic in an easy-to-understand way to the men around him.

"Let me give you an example," He started.

"Imagine we pay a farmer a hundred ropals. He will then go and spend this money on things he needs. For simplicities sake, let's assume he goes to a blacksmith to buy tools worth a hundred roplas."

"The blacksmith will then will takes this new money to .., let's say buy clothes from a tailor. The tailor might then use the money to buy furniture from a carpenter. The carpenter might then buy pots from a potter, And at last, the potter might buy food from the same farmer."

"So, in this way, just one hundred ropals would change hands five times, and appear as five hundred roplas."


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