Which Assumption(s)does the Reduced-Form Model Relax in the Structural Model

Multiple Choice

Which assumption(s) does the reduced-form model relax in the structural model?

A) The simple liability structure for the firm's balance sheet.
B) The assets of the firm trade in frictionless and competitive markets.
C) Interest rates are constant.
D) All of these answers are correct.
E) None of these answers are correct.