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There is technically no limit to the number of words a dog can learn, if you want to take the time to teach your canine.
A dog learns by associating a word with an action or object. For instance, she learns whenever you say, "Sit!" that you expect her to put her hindquarters and bottom on the floor and stay put for a while. Whenever you say, "Fetch slippers!", she knows to get your favorite leather slip-ons and not your old tennis shoes.