The federal government of Byrcenstein has noted that an increasing amount of the funding it provides to its province-level initiatives is lost to misappropriations. Provinces with oversight institutions that monitor federal spending within the province are much less likely to see the misappropriation of federal funds than are other provinces. Consequently, the federal government, as part of an effort to reduce misappropriation, will offer additional funding to every province that sets up such an oversight institution.
Which of the following, if true, provides the strongest indication that the plan is likely to achieve its goal?
A. In five years or so, the additional funding that the federal government of Byrcenstein will be offering will amount to more than the cost of setting up an oversight institution to monitor federal spending within the province.
B. The number of provinces that have reported the misappropriation of federal funding in the past year is higher for Byrcenstein than for other countries.
C. The reduction in the risk of the misappropriation due to the establishment of oversight institutions is greatest when only a few provinces have such institutions.
D. Currently, the federal government of Byrcenstein cannot legally decrease the amount of funding it provides to its province-level initiatives.
E. The amount of funding that is provided to province-level initiatives by the federal government of Byrcenstein and lost to misappropriations has been higher for certain types of initiatives than for others.
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