Does photo size reduction for e-mailing degrade photos?

In using iPhoto to send photos by e-mail one has the option of reducing the size of these photos from actual size to small, medium, or large size in order to transmit them more quickly, but what effect does this size reduction have on the quality of the photos?
I suspect that the size reduction degrades the images, but I have not been able to obtain any sort of definitive information on this subject, even when I contacted Apple tech help. Is there some knowledgeable person on board who can give us the story on this issue?
I like the idea of transmitting photos as fast as possible, but not if it means degrading the images by reducing their size to speed up the e-mail process.
Bob

Smtr,
Thanks for your helpful reply. I wasn’t concerned about the original photo retained in my library, but only about the reduced-size copy transmitted by e-mail.
I’m amazed at how much one can reduce the photo size for transmitting by e-mail. I just randomly selected a 3.3 MB JPEG image which can be squeezed down to only 63 KB by selecting the Small size in the Mail Photo window. I calculate that the reduced size photo would be only 1/52 the size of the original. I assume that the 63 KB image would be a very poor candidate for producing a print! I also assume that the 63 KB image, when viewed by the recipient on his monitor, would be a lot smaller than it would be if I sent him a copy at Actual Size.
Suppose the the recipient’s e-mail system could not handle the Actual Size 3.3 MB photo, so I send him a Large copy (414 KB) or a Medium copy (122 KB). Would either of those reduced-size photos produce a decent print as small as 4 X 6? I am trying to get a feel for how far I could squeeze down the size of one of my photos for e-mail transmittal before it becomes unsuitable for producing even a small print.
Comments?
Bob

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