Yes Brandon this will behave as you state, although most people find out about this functionality the hard way when they accidentally set Static NAT for a network object instead of Hide NAT like they intended. Depending on the subnet mask size, the firewall will start suddenly translating hundreds or even thousands of IP addresses statically.
Libin if the source network is larger than the NAT network, this can be configured on a Check Point and I refer to it as a "many to fewer NAT". You can see my breakdown of the setup process here:
https://community.checkpoint.com/message/6516-r8010-hide-behind-many-question?sr=search&searchId=f8f...
--
My book "Max Power: Check Point Firewall Performance Optimization"
now available via http://maxpowerfirewalls.com.
Gateway Performance Optimization R81.20 Course
now available at maxpowerfirewalls.com