The proximity effect refers to the tendency for physical and psychological nearness to increase interpersonal liking.

The statement is true. The proximity effect is a well-documented phenomenon in social psychology that suggests that the physical and psychological closeness of individuals can increase their liking and attraction towards each other. This effect is often observed in a variety of settings, from college dormitories to workplace environments. Research has shown that physical proximity can lead to increased familiarity, frequency of interaction, and opportunities for social exchange, all of which can contribute to interpersonal liking and attraction.