Answer to Question #177580 in Macroeconomics for Teonnie williams

Question

Dupont has recently announced large layoffs at its delaware sites. even though you may not know anyone at DuPont, how would this affect you?

Answer 1

The currency of the country in which the unemployment rate is increasing can both fall and increase in value in relation to other currencies (for example, the US dollar, with a constant increase in unemployment in the country, has always grown in relation to other currencies during the crisis).

Since the economy depends on the dollar, its appreciation contributes to the appreciation of goods, especially if the economy is heavily dependent on the export of goods. Therefore, this situation is negative for me.