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Some are urging that China will try to dump the U.S. Treasuries as part of the ongoing trade war. Although it is not likely to happen, what will be the impact on (1) the value of the U.S. dollar (appreciate or depreciate) and (2) the interest rate of the U.S. market (raise or drop) if China really sells a lot of Treasuries holding at a low price? A reference link (URL) to an article that supports your answer will be a plus
Please provide step by step explanation so I can understand.
Suppose that, to begin with, this exchange rate is an equilibrium rate.
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