I agree that to a point, a larger engine will give better FE. I have had several GM 2.8 and 3.1 MPFI engines in identical cars, and the 3.1 always gives better FE. The only difference between the powertrains is the piston stroke.
Same thing with some others, when you have an undersized engine for the vehicle, the FE takes a dump. Take a larger engine so you barely have to work it, and to a point you can get better FE.
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