How did the new deal policy of loaning money to farmers 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.

The answer is the third choice AKA C hope that this helps

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

This New Deal policy was established in the Agricultural Adjustment Act (1933). Under this statute, the Government would pay farmers for cutting back production by about 30 percent of corn, wheat, cotton, rice, peanuts, tobacco, milk and others, in order to even the balance of supply and demand for farm commodities, which would cause a rising of prices and would eventually increase the farmer's purchasing power and would contribute to America's economic welfare as well.

a case involving the laws of a single state.

yes he can but hardly

explanation: