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In 1819 a Danish scientist named Hans Christian Oersted discovered a close relationship between electricity and magnetism with this experiment. The new knowledge led to the study of electromagnetism.
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When the switch is closed the current flowing through the circuit creates a magnetic field around the wire. The magnetic needle reacts to the magnetic field in the circuit and turns perpendicular to the wire. This experiment is one of the most important in the utilization of electric power as it led to the discovery of electromagnetism and the development of the electric motor.