How did the end of the Cold War contribute to the Clinton-era economic boom?

Question

(1 point)

People were no longer afraid and were willing to spend more money on luxury goods.

Americans welcomed people from the former Soviet Union into the U.S. job market
• Costly military resources did not need to be maintained at the same level.
• Expensive presidential visits to the Soviet Union were no longer necessary.

Answer 1

The statement that best explains how the end of the Cold War contributed to the Clinton-era economic boom is:

Costly military resources did not need to be maintained at the same level.

As the Cold War came to an end, the U.S. was able to reduce its military spending significantly. This decrease in defense expenditure allowed for reallocating resources towards domestic programs and economic initiatives, which contributed to the economic growth experienced during the 1990s.