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My wife drives an 2003 Toyota Echo automatic transmission. It gets great gas mileage, she gets high 30s with normal in-city driving without hypermiling. I was wondering if that car cuts the fuel injectors when engine braking (i.e. foot off throttle).

Please perform the test I outlined in the "How can I tell if a vehicle other than the Yaris has DFCO?" section at http://www.yarisworld.com/forums/showthread.php?t=4248

In the absence of an out-and-out FAS, the jury's still out
on whether NICE-on at idle is better/worse than fuel-cut
in gear and dragging the engine ... and it probably varies
car to car. Now, if the newer non-hybrids combine the same
valve timing games that the Prius does in warp stealth, that
might help the DFCO side a whole lot. Or the "valve pause"
cylinder shutoff that Honda does in the Civic.
.
_H*