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Answer 1: The closest answer would be decreased; but it's not really as simple as that.

Luther was a Roman Catholic monk... specificially, a member of the Augustinian order of monks, in Germany. At the time, The Bible was written in Latin; and so only Roman Catholic priests (and monks, like Luther) tended to be able to read and translate the Bible so that the regular German people could understand it.

Roman Catholic Priests were also viewed by the Roman Catholic Church as the vehicle -- the connection -- between the parishioners and God.

Roman Catholics also believed (and continue to believe) that we are saved by our good works, whereas Luther said that we are saved by grace, through faith, alone.

And, what the heck, as long as I'm listing the larger of the things that eventually so bugged Luther that he decided to write 'em down and nail 'em to the door of the church at Wittenberg, he was none too happy about the Pope forgiving the sins of anyone making a huge donation to the church, and promising them a free ticket to heaven (called "selling indulgences").

Next thing you know, the Protestant Reformation had begun; and the forerunner of what is, today, the Lutheran Church was born.

So here's how all that is somehow related to the answer to your question: Luther translated the Bible from Latin to German so that the masses could read it. He allowed no selling of indulgences; and even explained to said masses why it wouldn't work, in any case. He explained to the masses how salvation by grace, through faith, works. And he introduced to the masses the notion of "the priesthood of all believers," wherein any Christian can have his/her own relationship with God, without a Roman Catholic Priest -- or any clergy, for that matter -- as an intervenor.

Therefore, it's fair to say that Luther decreased the role of clergy in the sense that in his new church -- from which all Protestant churches were born -- clergy wasn't necessary in order for church members to get with God.

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Q: Did Martin Luther's teachings increase or decrease the role of the clergy?
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