It hooks into a solenoid on the carb that opens to richen the mix a little when certain conditions are met:
Foot is off the gas pedal
Foot is off the clutch pedal
Transmission is in 3rd or 4th gear
The idea is that when coasting, it gives the motor just a little more gas. Probably it is thought to have needed a little more gas during coasting to burn more cleanly. Whether that is actually the case or not, who knows. At that point emissions equipment on vehicles seemed like it was half guesswork. Later Isuzus, I think 82 LUVs, and maybe Cali emissions models instead have a "slow cut" solenoid that works off the same sort of switch setup. I think it actually does just the opposite.
You can sometimes feel the effect of this happening if you either lightly press the accelerator pedal or the clutch when coasting in 3rd or 4th. If you can press the gas or the clutch down enough to engage the switch but not actually do anything else, you should feel a slight decrease in speed. In my 79 was more noticable like cruising in town it made 5MPH difference in idle speed in third. My 76 and 77 is was hard to tell. I disconnected one of the switches because I was always riding the clutch pedal to keep it from coming on.
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