Answer the following statements true (T) or false (F)

1. In the monetarist view, the economy is inherently stable, but the mismanagement of monetary policy creates instability.
2. Monetarists argue that V in the equation of exchange is stable and thus a change in M will bring about a direct and proportional change in nominal GDP.
3. If M is $1,000, P is $8, and Q is 500, then V must be 6.
4. The equation of exchange indicates that an increase in money supply will always lead only to inflation.
5. Real-business cycle theory views changes in resource availability and technology as shifting aggregate demand and thus causing macroeconomic instability.

1. T
2. T
3. F
4. F
5. F