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This Conditional Tag checks if the taxonomy object is hierarchical. This is a boolean function uses a global, meaning it returns either TRUE or FALSE (A false return value might also mean that the taxonomy does not exist).
checks to make sure that the taxonomy is an object first. Then gets the object, and finally returns the hierarchical value in the object.
<?php is_taxonomy_hierarchical( $taxonomy ) ?>
is_taxonomy_hierarchical() is located in