The quantity of dollars supplied in the market for foreign-currency exchange is: less than the quantity demanded and the dollar will appreciate.
Equilibruim level can be defined as the level at which supply equal demand.
In a situation where equilibrium level is a above the real exchange rate this means that dollar will appreciate in the foreign exchange market as the amount of dollars will be lower that the quantity demanded.
Therefore the quantity of dollars supplied is less than the quantity demanded and the dollar will appreciate.
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