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Consider the following quote from the Australian Financial Review: Australian shares fell on Monday in a broad decline as investors responded to a slew of

Consider the following quote from the Australian Financial Review:

"Australian shares fell on Monday in a broad decline as investors responded to a slew of corporate announcements and speculation of aggressive US policy tightening to rein in inflation."

Explain, the reasoning behind this statement. What is the logical link between the decline in Australian stock market, corporate announcements and the US monetary policy? Relate your answers to the theories studied in class.

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