Consider a small open economy that is running a large trade surplus, of approximately 15% of GDP. In this economy, the government is contemplating a large corporate income tax reform, to better align corporate income taxes with the rest of the world, and to limit incentives for firms to locate activity abroad. In what follows we will denote by r the level of world interest rates, and by r^c the interest rate that would prevail if the country were a closed economy and had a no trade surplus. (b) Some proponents of the reform argue that lowering the corporate income tax rate will be good for the economy because it will stimulate exports and increase the trade surplus by making firms more competitive. Do you agree? Make sure to justify your answer using a model we learned in class