Without spaces makes paragraphs with a white line between. Otherwise, if there's any hint of html coding in what's pasted in, it will mush it all together into a wall of text.
It's easier, of course, to copy the < p > and just paste it down the doc where you need a paragraph break.
Others may have better ways to manage it.
LOL, I tried that. It worked with the different drops but not the sentences. I am not nearly smart enough to figure that one out.