A Terraform local value can reference other Terraform local values. True or False?

A Terraform local value can indeed reference other Terraform local values, making this statement true. Local values in Terraform are a way to define variables that can hold information for use within a specific configuration. When creating a local value, you can make its definition dependent on one or more other local values, which promotes reusability and modularity in your Terraform configurations.

This approach allows for cleaner and more efficient code, as you can break down complex expressions into smaller, understandable parts. For instance, if you define a local value that computes a base URL for your application, another local value can then build upon that base URL by appending additional path segments or parameters. This demonstrates how local values can interconnect, maintaining clarity and reducing redundancy in your code.

The other options suggest limitations that do not exist in regards to local values referencing each other. There is no requirement that local values only operate within certain confines, such as modules or files; they are designed for broader use within the same configuration where they are defined.