The DC is not shown in the OPs circuit, but the DC is modulated by a rectangular wave signal soI may be incorrect, but I don't think it's similar. In AM radio an AC carrier is modulated by an AC signal. It's not DC modulated by AC. In this question there is no modulation happening at all.
the rectangular signal never passes 0. As such, the DC voltage is the carrier.
Either DC or AC can be a carrier, and thus modulated. General principle.
In response to the op's first post, whether a capacitor is suitable depends upon the application
which includes the frequency involved.
Over and out
pos




