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In my experience with my 93 cougar, you can tell that the thermostat is bad by one of two ways. First, it overheats. If it overheats the thermostat is in the closed position and it is not opening up to allow the cooler water to enter the engine. Second, if during the winter the temperature gauge will not move up and the heater is blowing cold air, then the thermostat is stuck in the open position and is not allowing the water in the block to warm up. In either scenario, you should probably replace it. They are really inexpensive and can be replaced with little to no trouble. You will, however, need to drain about a gallon or so of the antifreeze so that the fluid level is below the thermostat housing. When refilling the antifreeze make sure you remove the bolt on the top of the engine so that it will allow the air to escape. Hope this helps.
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