U.S. economy

Plot both markets on separate graphs on one page and illustrate the following:

Currency Exchange market: using $1.00 for Quantity of U.S. Dollars and 7 RMB Yuan for the exchange value as point (A equilibrium).

Currency Exchange market: using 1 RMB Yuan for Quantity of RMB Yuan and $0.14 U.S. Dollars for the exchange value as point (A equilibrium).

1)What will happen to the value (appreciate or depreciate) of both the U.S. dollar and Chinese RMB Yuan when the Chinese government increases its purchase of U.S treasuries (bill, notes, and bonds)?

Will this lead to a trade surplus or a trade deficit?