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At radio frequencies, like VHF (very high frequencies), a coil in a wire will make some difference to an electrical circuit, but at 60 cycles per second, I'd say none whatsoever. My guess is that was one of the wrong answers on the test.

AFAIK, it is not correct to shorten the neutral wire on an AFCI breaker. That would lower the resistance very slightly. Maybe that is also a myth.

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Is it okay for the pigtailed neutrals on AFCI & GFCI breakers to be pulled straight eliminating the coiling? I seem to remember a question on the NHI test where the correct answer was that a GFCI needed a coil at the neutral.

The wire doesn't have to be coiled. It's just a compact way to arrange the wire.

I've never seen any warning on any set of installation instructions saying that you can't straighten the wire or shorten it.

It's quite rare for a wrong answer to make it into the NHI. It's more likely that you misread the question. Many of the questions have to be read very carefully.

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