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The finance minister of Beamland announces that the corporate tax rate will increase from 35% to 40% in order to finance the countrys budget deficits.

The finance minister of Beamland announces that the corporate tax rate will increase from 35% to 40% in order to finance the countrys budget deficits. As a counterbalance, she simultaneously announces the decrease in the dividend income tax from 10% to 5%, claiming that the change will have no effect on domestic investors. Do you agree with her statement? Explain

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