The Multiple Cut-Off Approach Allows Applicants to Make Up for a Poor

question 36

True/False

The multiple cut-off approach allows applicants to make up for a poor score on one predictor by achieving a strong score on another predictor.

---

Definitions:

Purchasing-Power Parity

An economic theory that compares different countries' currencies through a "basket of goods" approach, suggesting that exchange rates should adjust to equalize the cost of this basket between countries.

Real Exchange Rate

The speed at which an individual is able to convert the money of one nation into that of another, taking inflation into account.

Nominal Exchange Rate

The speed at which the currency of one nation can be traded for the currency of another nation, without correction for inflation.

Trade Balance

Trade balance is the difference between the value of a country's exports and imports over a certain period, indicating the relative strength of its international trade.