The Smoot-Hawley Tariff Act was designed to protect American businesses by imposing high tariffs on imported goods. However, the result was a proportionately larger increase in imports rather than the intended decrease. This unexpected outcome can be attributed to several factors.
Firstly, other countries retaliated against the U.S. tariffs by imposing their own tariffs on American exports, leading to a decline in international trade. As a result, even though the U.S. aimed to encourage domestic consumption of American-made goods, many foreign products were still imported because consumers sought cheaper alternatives, and international markets found ways to work around the tariffs.
Secondly, the economic context of the Great Depression also played a crucial role. Many countries were struggling with their economies, and protectionist policies ended up worsening the situation for everyone involved.
In summary, the answer is A: increase exports, increases in imports, because the Smoot-Hawley Tariff Act did not fulfill its purpose of reducing imports effectively and ultimately led to an increase in imports as countries retaliated and consumers adapted.