You and a friend are eating at an outdoor cafe. Someone drives by in a really fancy sports car. Your friend comments that it's a cool car. You agree.
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"Indeed" means "Yes, that is true."
You can respond "Indeed" to support someone's opinion or idea. For example:
A: We should get started soon.
You can also say something along with "indeed" like this:
Indeed it is.
A: Are you the artist who did these?
B: I am indeed.