Which of the following statements best supports the criticism of the economy that developed during the 1920s?

The statement that the boom was based on speculation and borrowed money effectively supports the criticism of the economy during the 1920s because it highlights the fundamental instability and unsustainable nature of the economic growth experienced during that decade. The optimism of the era led many investors to engage in speculative practices, driving stock prices to artificially high levels without corresponding increases in actual corporate earnings or economic fundamentals. This reliance on borrowed money for investment further exacerbated the situation, creating conditions ripe for a financial collapse when market confidence faltered.

In contrast, the other statements do not capture the critical vulnerabilities of the 1920s economy. While agricultural growth did occur, it was not the cornerstone of the economic boom, which was primarily driven by industrial expansion and consumer spending. The decade was marked by industrial advancement, but this progress masked underlying issues such as income inequality and overreliance on credit. Additionally, the assertion that the stock market was stable and reliable is misleading, as it ignores the prevailing volatility and the eventual crash in 1929, which contributed to the onset of the Great Depression. Thus, the focus on speculation and borrowed money provides a clear critique of the underlying weaknesses that characterized the economic landscape of the 1920s.