Final answer:
The direction of the induced current in a square loop of wire depends on whether the magnetic field through the loop is increasing or decreasing due to an external influence, like a moving magnet, following Lenz's Law to oppose the change in magnetic flux.
Step-by-step explanation:
The direction of current in a square loop of wire can be determined based on Lenz's Law, which states that the induced current in a loop of wire will flow in such a way as to oppose the change in magnetic flux through the loop. If the magnetic field through the loop is increasing, the induced current will be in a direction that creates a magnetic field opposing the increase. Conversely, if the magnetic field is decreasing, the induced current will produce a field to oppose the decrease.
In the provided scenarios, the direction of the induced current would depend on whether the external magnetic field is increasing or decreasing. For example, as a magnet with its north pole approaching a loop, the induced current flows in a direction that creates a north pole to repel the approaching magnet, which would be clockwise as seen from above. When the magnet is leaving, the induced current would flow counterclockwise to attract the retreating north pole with a south pole.