All other things being equal, under a managed exchange rate system, a central bank intervention to support the value of its domestic currency by selling foreign exchange reserves is most likely to cause an increase in:
the rate of domestic inflation
the level of cyclical unemployment
the price competitiveness of domestic exporters
the central bank's stock of foreign currency reserves
310 exam-style questions on AQA A Level Economics 2.6 The international economy (A-level only), covering 2.6.1 Globalisation, 2.6.2 Trade, 2.6.3 The balance of payments, 2.6.4 Exchange rate systems, and 2.6.5 Economic growth and development. Each one has a worked solution and a mark scheme showing where the marks go.