The fuse will be blown off in case of any fault. But the circuit will not be isolated because of the presence of fuse in nutral line. current will still flow and the line will be so dangerous.
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If the circuit is a single wire circuit and the fuse blows the circuit will open. If the circuit is a three wire circuit and the fuse blows in a neutral, then there is a possibility of the two circuits becoming in series with each other and if the load is not balanced one circuit can become overloaded. It is exactly the reason why in North America the electrical code does not allow the fusing of any neutrals.
The live wire is connected to the fuse to ensure that the circuit is interrupted in case of an overcurrent or short circuit, which helps prevent fires and electrical hazards. The neutral wire completes the circuit and does not carry any current in normal circumstances, so connecting it to the fuse would not offer the same protection.
You should never switch the neutral wire. The neutral of the appliance should be connected directly to the neutral wire leading to the service panel neutral bar.
A fuse is typically connected to the live wire in a circuit. This is done to protect the circuit from an overload or short circuit, as the fuse will blow or trip and cut off the current flow if there is an issue.
So that the live wire is isolated when the fuse blows. If a fuse was placed in the neutral, the equipment would still be live when the fuse blows.
The neutral wire from the chain switch is connected to the white wire from the ballast. They should be connected together using a wire nut to ensure proper circuit completion and safe operation of the light fixture.