Answer:
In a direct democracy it is the people who directly make decisions about new laws, spendings or course of action either by voting or by reaching a consensus. Whereas in an indirect democracy people first elect a smaller group that would be their representatives (a US congress is an example of such a group) in the decision process.
In a local referendum people are directly voting for one of the provided options and the one that gets the biggest amount of votes is chosen. No additional steps of electing representatives is involved which means that a local referendum is an example of a direct democracy.
Please note that, a direct democracy may not scale too well. In a country as big as USA it would be very inefficient and logistically challenging to organize universal referendums over every matter.
Step-by-step explanation: