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Text types along the horizontal border of the text box instead of being written inside of it. What's wrong?

I created a text box by dragging the horizontal text tool.

But when I start typing, the text aligns along the upper border of the box instead of being written inside of it.

It looks like this.

Image may be NSFW.
Clik here to view.
Screen Shot 2014-07-04 at 9.17.48 PM.png

 

How can I fix this, so that the text is inserted inside the defined box?

 

Much thanks in advance!


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