Used when someone says something that you didn't do or have no intention of actually doing.
Person 1: "Hey, did you do the bio homework?"
Person 2: "Nice joke, faggot"
Person 1: "You don't smoke weed right?"
Person 2: "HAHA! Nice joke, fag."
White Man: "Pick my cotton dumb nigger!"
Black Man: "Haha, nice joke. Now GET THE FUCK OUTTA HUR BEFO I SHANK YO CRACKA ASS!"
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