Suppose a Chinese citizen buys a box of Nestlé Kit Kat candy bars from America and Nestlé uses the currency to buy Chinese-produced machinery. How will this transaction enter into the U.S. balance of payments?
A) as an increase in current account, as an increase in capital account
B) as a decrease in current account, as an increase in capital account
C) as an increase in current account, as a decrease in capital account
D) as a decrease in current account, as a decrease in capital account
E) There will be no net change in current account or capital account.
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