Shown in the figure is a small circular loop that is co-axial with the bigger circular loop. If the slider moves from A to B, then

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When the slider moves towards B, the resistance of the circuit (bigger loop) decreases. Therefore, the current in the bigger loop increases. The increasing current results in increasing flux ( φ φ α α i) linked by the smaller coil. Consequently, induced emf will be generated in the smaller loop causing an induced current so as to oppose the increase in flux. Therefore the current flows anticlockwise in the inner loop.
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