I imagine(pun intended) it’s like this. You see a word, “horse”, your mind pulls out the image of a horse it has the strongest memory of.
You read “white horse with a saddle”, its the same, your brain pulls put an image of a horse that has the strongest imprint on your memory, same for saddle, same for color. And there you go.
Imagination is a combination of real memories(or previous imaginary memories) being combined to create new imaginary memories.
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