how did the new deal policy of loaning money to farmers help create higher prices for farm goods? it…

how did the new deal policy of loaning money to farmers help create higher prices for farm goods? it permitted farmers to buy land, thus raising prices on crops grown there. it permitted farmers to invest money, thus relieving them of the need to work. it permitted farmers to produce fewer farm goods, thus raising prices. it permitted farmers to produce more farm goods, thus raising prices.

how did the new deal policy of loaning money to farmers help create higher prices for farm goods? it permitted farmers to buy land, thus raising prices on crops grown there. it permitted farmers to invest money, thus relieving them of the need to work. it permitted farmers to produce fewer farm goods, thus raising prices. it permitted farmers to produce more farm goods, thus raising prices.

Answer

Brief Explanations:

The New Deal loan - giving policy to farmers aimed at reducing agricultural production. By having more financial resources (from loans), farmers could afford to produce fewer goods. According to the law of supply and demand, when the supply of farm goods decreased while demand remained relatively stable, prices increased.

Answer:

It permitted farmers to produce fewer farm goods, thus raising prices.