1.   As a result, the surplus shrinks, or the deficit increases, both from declining revenues and increasing costs.

2.   A larger-than-expected deficit increases the likelihood that more bonds will need to be sold to offset the shortfall.

3.   A narrower deficit will increase demand for the ringgit.

4.   From which it follows that, barring spending cuts of which even the most hawkish Republican dare hardly dream, the government budget deficit will increase.

5.   In fact, as the deficit was increasing over the last year, the dollar was strengthening.

6.   Near-record unemployment is eroding revenue and increasing welfare spending, causing the deficit to increase.

7.   Public deficits increase the tax burden and drag the whole economy downward.

8.   Rising deficits increase interest rates, which increases borrowing costs for businesses and individuals and could slow economic growth.

9.   Speculation that the July trade deficit would increase sharply also led investors to worry about a possible devaluation in the Brazilian real, analysts said.

10.   Still, the U.S. trade deficit increased less overall than analysts had expected, and the dollar rose against the yen today.