What is the effect of a phase modulator's non-linearity on the transmitted spectrum?
Answer: C
Non-linear phase shift distorts the modulation, and distortion products appear as additional sidebands outside the predicted set, spilling into neighbouring channels. It is the reason the linear range of the modulator caps the usable index. The carrier weakens and returns according to the Bessel functions rather than vanishing permanently. Bandwidth grows rather than narrows. And the envelope stays constant, since a phase modulator does not touch amplitude.
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