N most heat pump thermostats you have two control switches and the temp setting. One control switch will say "Heat", "Off", "Cool" while the other says "On" and "Auto". The three position switch is for whether you are heating or cooling. The two position switch is for the fan control. "On" will make the fan run constantly whenever the three position switch is in HEAT or COOL mode. Some people use this to circulate air at all times. MOST people use the AUTO mode, where the fan is controlled by the circuitry and runs during the times of heating and cooling only.
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