Which of the following statements defines the term ‘interest growth rate differential’ (IGRD)?
1
The difference between interest paid on government debt and the economy’s nominal growth rate.
2
A loan in which the lender receives interest during the term of the loan and principal is repaid in a lump sum at maturity.
3
The ratio of proposed Principal and Interest payment expenses is divided by the gross monthly household income.
4
None of the Above