> Question 25 1 pts Which of the following statement is correct? All the answers are incorrect. There are two versions of the purchasing power parity (PPP) theory: the agency PPP and the principal PPP The absolute purchasing power parity theory posits that exchange rates are determined by the differences in the prices of a given market basket of traded goods and services when there are no trade barriers. There are no significant diversification benefits to investing in a variety of countries, both for MNCs and for individual investors. The international Fisher effect states that changes in the GDP growth rates for two countries will be offset by equal changes in the same direction