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Advanced timing is better for fuel economy, up to a point ofcourse. The combustion of the fuel and air mix happens at the best moment possible, instead of a little late or to early. This way you get the most energy out of every bang. With todays fuels you can easily advance your timing a bit on older cars.
Advancing your cam timing also helps, because that shifts the powerband lower on the rev range. Combine that with a little loose valve adjustment for some shorter duration and lower opening and it should be noticable.
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