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When I'm exporting in InDesign,the compression settings say that I am able to change the dpi and chose the format of the compression.

Does this mean that if I select 72 dpi and JPEG format all the images in the document will be converted to this specification?

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Short answer: Yes.

All raster images are compressed according to the setting you choose. But downsampling is only done to images above the threshold you set.

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