The correct answer is D) British and French demands for American goods created a trade imbalance.
The other options of the question were A) American demands for French goods created a trade imbalance. B) Trade between America and the European countries stabilized and was equal. C) Trade decreased between America and European countries.
Trade between America and European countries was affected by the war in that British and French demands for American goods created a trade imbalance.
The imbalance was created when other European nations failed to trade with the United States while France and Great Britain were at war. Basically, all of the supplies from the United States were sent to these two countries, affecting trade with other countries that suffered from this commercial imbalance.