Members of the Canadian Parliament have voted themselves an annual pay raise while the country is operating under a budget deficit. What will be the result of a pay raise for all Members of Parliament?

Question

Quizplus · Accepted Answer

A pay raise for Members of Parliament will increase government spending, leading to an increase in the federal debt. It is unlikely to affect social programs or the reserve requirement, and there is no direct impact on interest rates.

Members of the Canadian Parliament Have Voted Themselves an Annual