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The demultiplexer circuit can be transformed into a decoder.
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The decoder determines type of the input bit pattern, therefore it is a circuit useful to interpret bit patterns.
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Address inputs A and B specify a binary number.
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The output matches the specified binary address input as follows:
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An example of a bit pattern would be an OPCODE that specifies the type of the CPU instruction.
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If the number of addressing inputs (A, B, ...) is equal to k, then the number of output lines becomes 2k.
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