Literally – this phrase is used to describe when a person is so incredibly frightened or scared by something, that he or she is literally shaking or “trembling“.
Idiomatically (or “figuratively” speaking) this phrase is used, in an exaggerated sense, to express that one is just very very scared, even if that person is not actually trembling.
In this phrase, the word “with” can also be replace by the word “in“, however it is not as common and, grammatically, not as precise – but no one seems to care about that, so wichever you think sounds better… well, go for it! 😉
Grammatically speaking, it would be more logical to say that a person is “trembling from fear”… but – as you probably know by now (especially after the explanation above) – the English language is not always “grammatically logical”. So, instead, we more-commonly use “with”.
As with the second example above, this phrase can also be used sarcastically in response to some sort of threat or a situation where-in a person is trying to come across (either through spoken or written form) as being very tough or intimidating… but is somehow failing.
Other Phrases With The Word, “Trembling”
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