18Money Supply Credit CreationEasy1 markThere are different measures of the money supply from narrow money to broad money. Why are different measures necessary?Abecause different countries have their own national measures of money supplyBbecause of disagreement among economists over the importance of money supplyCbecause of the need to produce different measures of inflationDbecause of the need to reflect the different functions that money performsGrade answerSolutionGrading criteria