In the settings of the Terminal app, in the advanced tab, there is an option to "Paste newlines as carriage returns" which is enabled by default.
What is this good for?
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Sometimes you want to paste exactly what you've copied into something...say a document you're editing in nano
or vi
and want to preserve it exactly as it is.
Or, you could want to past the CR
so it executes the command.
Perhaps the default action to pastes exactly what was copied makes more sense than altering a paste buffer before the application processes the clipboard.
Converts the ASCII \n bytes into \r bytes, or line feeds into carriage returns. This way the system ignores any possible UNIX to MAC line-ending confusion when pasting from the Terminal.
This is very useful in some shells (zsh and bash work, but not tcsh for example) so that if you accidentally paste a whole lot of text, it is not immediately executed as a long series of commands. You can edit what is pasted or just abort using Ctrl-C.
I also like it for copying a rectangular subselection of what's on the clipboard by dragging with the option key.