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Let us do the following activity to understand the magnetic effects of an electric circuit.
 
Steps:
  • Take a straight, thick copper wire and fix it between the point X and Y in an electric circuit, as shown in the below figure.
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Electric circuit
  • The wire XY is maintained perpendicular to the plane of the paper.
  • Horizontally, place a small compass near this copper wire.
  • Observe the position of its needle.
  • Pass the current through the electric circuit inserting the key into the plug.
  • Observe the change in the position of the compass needle.
We observe that the needle is .
 
What does it mean? 

It means that the electric current flows through the copper wire have .
 
Thus, we can state that .