Other things being equal a recession is likely to

A) have no effect on federal receipts or outlays.
B) increase federal outlays but have no effect on federal receipts.
C) decrease both federal outlays and receipts.
D) increase federal outlays and reduce federal receipts.

Federal Receipts

Revenues collected by the federal government, primarily through taxes, but also including other sources such as customs duties and earnings from the Federal Reserve's operations.

Recession

A recession is a significant decline in economic activity spread across the economy, lasting more than a few months, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

Outlays

Expenses or expenditures made by a government, organization, or individual.