Setting the space between paragraphs
Just like line spacing, Word has settings for the space between paragraphs. Normally in the newer versions of Word, hitting the Enter button will result in Word generating a new paragraph automatically for you. However, you are welcome to change the formatting settings should you so desire.
You can do this to make paragraphs more distinct from one another as is the case for an increase in spacing, or to save room on the page by decreasing it.
As your line spacing decreases, it is recommend to slightly increase the paragraph spacing, as this way your paragraphs will stand out more from one another and the reader will be able to easily identify them.
You can also just hit Shift+Enter to get a standard line break at any time instead of a full paragraph break.