Monetary Policy Practice Test

Based on the monetary policy action shown, the central bank conducts a sale of government securities (open market operations) to reduce inflationary pressures in the short run. In the money market, the money supply shifts from $MS_1$ to $MS_2$ (leftward), and money demand ($MD$) is unchanged. Which statement best describes the short-run implication for the nominal interest rate?

Based on the monetary policy action shown, the central bank increases the discount rate to pursue a contractionary stance for short-run stabilization. Holding money demand (liquidity preference) constant, which short-run movement is most consistent with the money market model?