Think about it like this, the engine consumes more power the faster it spins because that's how friction works. By putting it in idle, you're slowing the engine down and reducing its energy consumption, so yes, it generally works.
It might not work on certain cars with extremely tall gearing on flat terrain. If your cruise rpm is like 1500 (e.g. Corvette) I would guess that engine on pulse and glide doesn't do much. However if you see a hill, that's a good opportunity to drop it in neutral on a slight downgrade.
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