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My dad uses a '75 Blazer (350 with a 3 on the tree) to tow his race car. It only has a 2bbl carb, but does just fine towing, and probably manages around 7-8 mpg. It is only driven to tow the car and trailer, so I'm not sure what sort of fuel economy it can achieve only pulling it's own weight.
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Dustin
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