In a superheterodyne receiver with automatic gain control (AGC), as the strength of the signal increases, the AGC:

The primary purpose of Automatic Gain Control (AGC) is to maintain a relatively constant audio output level despite variations in the received signal's strength. It achieves this by monitoring the signal level and adjusting the receiver's amplification dynamically. When a signal's strength increases, the AGC circuit generates a negative feedback control voltage that reduces the gain of the preceding RF and IF amplifier stages. This scaling back prevents the amplifiers from overloading, which would otherwise distort the audio. Conversely, if the signal fades, the AGC increases the gain. The distractors are incorrect because increasing gain on an already strong signal would cause severe distortion, and while a defective AGC might cause distortion, the intended normal function of AGC is always to reduce gain as signal strength rises.