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You pretend you understand what they said, but you're just trying to make yourself look cool while they're confused.
You say, 'I know what you mean,' after they say they're tired from work. You're just trying to sound like a boss.
Your friend says they're mad at their mom. You say, 'I know what you mean,' even though you've never had a mom.
Your crush says they're nervous about the test. You say, 'I know what you mean,' even though you aced it last year.