Jennifer,
In a word, yes.
A file encoded at 128Kbs will take up roughly half as much disk space as one encoded at 256Kbs. However bit rate alone does not define the true size. It can also be potentially increased if the file has a large amount of embedded ID3.2 tags stored within it. However this is not usually the case.
If space is at a premium (for example when you will be listening to files on a portable MP3 player), then smaller is probably better to maximize the space on the player. Also you will probably be not to concerned about maintaining perfect audio quality when using a portable player since outside noise will always interfere with what you are listening to. 96-128Kbs should be fine.
However, if you wish to listen on either an in car MP3 player or listen on a computer equipped with big speakers, or on a proper stereo then 160Kbs should be the absolute minimum I'd go for, although I prefer 256Kbs.
Just an opinion is all, others may disagree
Rachel