(1) The condition for generating induced current is that the conductor of the closed circuit moves and cuts the magnetic induction line. Although the ab conductor is stationary, when the shoe magnet moves to the right in the horizontal direction, according to the relativity of motion and static, when the AB conductor moves upward in the vertical direction, the conductor does not move to cut the magnetic induction line, so there is no induced current in the conductor, so the pointer of the sensitive galvanometer does not deflect.

The direction of induced current is related to the direction of conductor movement and the direction of magnetic field. When one of the directions changes, the direction of current will also change. The direction of the magnet movement is unchanged, and the direction of the induced current can be changed only by adjusting the magnetic pole.

So the answer is: no deflection, magnetic pole.