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What is the significance of decoupling capacitors in power supply circuits?

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Decoupling capacitors are essential components in power supply circuits as they help to stabilize voltage levels and filter out any high-frequency noise or interference that may be present in the power supply lines. They provide a low-impedance path for high-frequency currents to flow to the ground, ensuring that the voltage supply to sensitive components remains stable and free from fluctuations. This helps in maintaining the overall performance and reliability of the electronic circuit by reducing the chances of voltage spikes or dips that could potentially damage the components.
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