Q. STATEMENT-1
The stream of water flowing at high speed from a garden hose pipe tends to spread like a fountain when held vertically up, but tends to narrow down when held vertically down. and
STATEMENT-2
In any steady flow of an incompressible fluid, the volume flow rate of the fluid remains constant.

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Solution:

According to equation of continuity, , when the hose pipe is held vertically up, the speed of the water, , decreases since the liquid moves up. Hence, the area of cross-section of the liquid, which comes out, increases resulting in the formation of a fountain.
The reverse happens when the hose pipe is held vertically down.
The speed increases and the area of cross-section decreases.