The Congress Budget Office estimated fiscal multipliers for various types of government spending. Please discuss the effectiveness of the fiscal stimulus in response to the coronavirus recession.

Category Total Output Multiplier Low Estimate High Estimate Purchases of goods and services by the federal government 0.5 2.5 Transfer payments to state and local governments for infrastructure 0.4 2.2 Transfers to persons (unemployment benefits, education transfers and food stamps) 0.4 2.1 Transfer payments to state and local governments for other purposes 0.4 1.8 One-year tax cuts for higher-income people 0.1 0.6 Business tax provisions primarily affecting cash flow 0 0.4