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I tried different values for the "before" and "after" paragraph spacing but couldn't determine a specific rule for the behavior. I expected the line separating paragraphs to adjust according to the values set for the "before" and "after" paragraph spacing.
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As Andrew pointed out, you need to take into account the Line Spacing for each paragraph as well. When the Line Spacing is set to "Single," it is easier to see the effects of different values for Spacing After/Before.