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%).