The Two Important Tests Used to Determine the Legitimacy of Impact

question 10

True/False

The two important tests used to determine the legitimacy of impact fees are: nexus and rough proportionality.

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Definitions:

Linear Relationship

A direct relationship between two variables where a change in one variable is directly proportional to a change in the other.

Reduction

The act of making something smaller or less in amount, degree, or size.

Nondiversifiable Risk

The portion of an investment's risk that cannot be eliminated through diversification, often associated with market-wide risks.