When the level of exports of U.S. made products is lower than imported goods, this will typically cause the domestic money supply to: reduce by one-half the amount of the imports. stay the same. Oecrease. Increase.

When the level of exports of U.S. made products is lower than imported goods, it often leads to a trade deficit. This situation means that more money is leaving the economy to pay for imports than is entering it from exports, which typically results in a decrease in the domestic money supply as the dollar moves out to foreign markets. A common consequence of this imbalance is that it can lead to depreciation of the domestic currency, making imports more expensive. If consumers and businesses start to rely on imported goods, they may inadvertently encourage more capital outflow, which can further compound the issue.