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The distributor grounds the signal wire on which the ign control unit is providing a 5V reference. The hall switch in distributor needs a ground and a 12V feed for its circuit to power up to do this task.
You should verify that you have 5V on one wire, 12V on one wire, and the other should have good continuity to ground. Then you jumper the ground wire to the 5V wire to get spark out of coil and also fuel pump will cycle for a few seconds.
IF all this occurs then the distributor hall switch is faulty. Volvo manual doesn't actually have you check the hall sw. but uses what I listed as a process of elimination to determine that it must be bad.
IF you have good wire connections and no 5V or 12V on those wires then you have ignition control unit trouble. Same for ground wire.
BTW, you can fashion a jumper out of a paper clip, the bare wire won't shock you as you touch do the jumper test.
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