I'm sure you could. People knit with plastic bags and recycled t-shirts, so why not ribbon. You would just need to check the content and care instructions. Actual ribbon is going to be lighter and probably won't hang/drape quite the same as ribbon yarn.
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Yes, you'll need a lot of it though so it may get expensive - ribbon yarn costs much less per yard. Use a large needle, like ribbon yarn, ribbon will knit up at a bulky gauge, even the thin ones.
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sue- knitting heretic
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