IME it depends on the cat - and the dog, to a degree. You NEED to find a kitten or cat that isn't instinctually afraid of dogs. And ideally, your dog NEEDS to be socialized and tolerant of other animals - to start.
I can only speak for my own dogs, but their reactions depend(ed; some are gone now) almost completely on the cat.
When we got a kitten, here's how we did it. My friend brought all of the kittens to our house and we let them walk around our kitchen with our two German Shepherds on the other side of a screen door, sitting quitely but inquisitively. Only one kitten was intrigued with and unafraid of the dogs. We took that kitten outside with the dogs and right away, all got along famously from the get go. All of the other kittens were hissing, arching their backs, frozen with fear, etc.
(These are two different dogs, same kitten.)
Another time with these same two dogs, I was visiting my brother one day and my dogs were on his front porch in his fenced yard. My DH called me out to say "come take a look". There was a neighborhood cat sitting between my two dogs on the front porch and all were peacefully resting the day away.
If the cat reacts, the dog reacts.
My current dog is pretty good with small animals as well. She would be fine with a cat who wasn't afraid of her. We did have a homeless cat family with us a few years back and the Mama cat kept going after my dog if she went anywhere near the kittens, but still my dog never even barked or snarled. One night we persevered with getting them together calmly and Mama cat and the dog ended up laying down under the coffee table together while we watched TV, but it only happened that once. Most other times the cat hissed and charged after my dog and the dog began becoming anxious in spots that were "hers". Otherwise the cat would have had a home with us (but we found her a good home with no dog nonetheless).
I had another Shepherd who used to come home from my In Laws house with little blood drips on his nose. Their cat didn't mind him sniffing her but if she'd had enough, she'd swat the dog to make him stop. The dog didn't hurt the cat or want to hurt the cat, just sniff. Hence the blood drips.
I do agree that if a cat (or other small animal) runs, it can invoke the instinctual prey drive and a dog will in all likelihood chase it. As evidenced one night when my dog came home with her nose actually split open after she ran after and apparently cornered a cat in our yard.

My dog will chase squirrels and rabbits as well, yet she'll be quite gentle with a little creature who's in our house. So is life with animals. Above is her little hamster friend whom she sit with and even grooms at night.
Again, this is only my experience. Every situation is going to be different depending on the players involved.