Which of the following assumptions are essential for the Rational Expectations Hypothesis to nullify the systematic impact of policy interventions?
A. Agents have full access to all past and current macroeconomic information.
B. Expectations are formed adaptively with adjustment lags.
C. Markets clear instantaneously without frictions.
D. Policy announcements are perfectly credible and anticipated.
1
A, B, and D
2
A, C, and D
3
B, C, and D
4
A, B, and C