Why does degeneration reduce distortion?
Answer: C
Series feedback makes the stage's gain depend on a resistor ratio rather than on the device's curved characteristic, so the non-linearity is divided down along with the gain. The amplitude at the base is actually reduced as a consequence, which is part of the same effect rather than a separate one. It does not change the current or filter anything. Feedback trades gain for every kind of accuracy at once, and linearity is one of the benefits.
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