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More ignition timing (up to the ideal point) generally equals more power at a given RPM, similar to more compression. Basically, it increases cylinder pressure when the plug fires. This can lead to a gain in low-end torque, but it shouldn't cause a loss of high rpm torque.
Advanced cam timing, however, moves the entire powerband down.
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Call me crazy, but I actually try for mpg with this Jeep:
Typical driving: Back in Rochester for school, driving is 60 - 70% city
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