Use the following to answer questions . Exhibit: Exchange Rates -(Exhibit: Exchange Rates) Which of the following is true of the equilibrium quantity, Q₁? A) It represents the quantity of U.S. dollars demanded by foreigners who purchase U.S. goods and services and U.S. assets. B) It represents the quantity of U.S. dollars supplied by the Federal Reserve. C) It represents the quantity of U.S. dollars supplied and demanded by foreign nationals. D) It represents the total amount foreigners spent in the United States during a given period.

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Equilibrium quantity represents the quantity of U.S. dollars demanded by foreigners who purchase U.S. goods and services and U.S. assets.

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