The effect of Commodity Credit Corporation loan programs is to alter the quantity demanded of farm products as well as to increase the quantity supplied.

Question

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The Commodity Credit Corporation loan programs provide loans to farmers for certain crops, which can increase their production and supply. This increase in supply can lead to a decrease in price, which can in turn increase the quantity demanded by consumers. Therefore, the loan programs can alter both the quantity demanded and supplied of farm products.

The Effect of Commodity Credit Corporation Loan Programs Is to Alter