3. The role of inflation and real versus nominal interest rates Which of the following are likely consequences of rising inflation? Check all that apply. A misallocation of resources An improved price-signaling mechanism A distorted price-signaling mechanism Savers wanting to save less and borrowers wanting to borrow more Suppose the nominal interest rate is 8% and the inflation rate is 2%, and then the real interest rate is Susan considers investing in the green energy industry and compares the following two options: % 1. One-year bonds issued by Air Wizard, a producer of wind turbines based in the United States, that pay a nominal interest rate of 8% 2. One-year bonds issued by iRain, a producer of rainwater harvesting system based in New Zealand, that pay a nominal interest rate of 9.8%