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Yes. For example, in the movie Harry Potter and the Half-Blood Prince, Dumbledore says "No, I was merely reading the Muggle magazines. I do love knitting patterns."

Muggle is not an insult. It is the word all the magic world uses to describe non-magic folk. Muggleborns are those with magic who were born of muggles. The insulting word for them is mudbloods.

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