xterm is completely configurable. Generally it has a default font of "fixed" (a bitmap fonts)
Assuming your xterm has Freetype support built in you can run use options like:
xterm -fa "Liberation Mono" -fs 10
# To get a list of acceptable fonts
fc-list :scaleable=true:spacing=mono: | sort
# to see current xterm related default settings
xrdb -q | grep -i xterm
xterm -fa "Liberation Mono" -fs 10
# To get a list of acceptable fonts
fc-list :scaleable=true:spacing=mono: | sort
# to see current xterm related default settings
xrdb -q | grep -i xterm
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You can make that selection permanent by adding settings to your X11 resources (typically a file ~/.Xresources):
XTerm*faceName: Courier:style=Regular
XTerm*faceSize: 14
XTerm*faceName: Courier:style=Regular
XTerm*faceSize: 14
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You may need to comment out other lines setting xterm fonts and/or use a different file depending on your distribution etc. Some general guidance can be found here. Also see the "xrdb" man page.
Once running if you hold down Control and left, middle, or right click you will get menus that allow you change things on the fly. The right-click menu allows you to change the font size.
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