Which of the following statements is true?
A. Grants to state and local governments are the largest component of the federal budget (about 50%) followed by spending on all its day-to-day activities (about 20%), while transfer payments are the smallest component (about 8%).
B. Transfer payments are the largest component of the federal budget (about 50%) followed by defense spending (about 20%), while spending on all its day-to-day activities is the smallest component (about 8%).
C. Spending on all its day-to-day activities is the largest component of the federal budget (about 50%) followed by grants to state and local governments (about 20%), while interest payments are the smallest component (about 8%).
D. Interest payments are the largest component of the federal budget (about 50%) followed by spending on all its day-to-day activities (about 20%), while defense spending is the smallest component (about 8%).
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