Choose the option that correctly transforms this sentence from direct…

The correct answer is Option (4) → The economist said that social media platforms were responsible for the rise in conspicuous consumption and household debt that year.

Reporting a statement in indirect speech:

Change	Direct	Indirect	Why
Reporting verb	said, “ ”	said that	“Said” stays, and the statement is joined with that. The inverted commas go.
Tense change	are responsible	were responsible	The reporting verb is in the past, so the present “are responsible” moves back to were responsible.
Words of nearness	this year	that year	“This year” becomes that year.
Full sentence	The economist said, “Social media platforms are responsible for the rise in conspicuous consumption and household debt this year.”	The economist said that social media platforms were responsible for the rise in conspicuous consumption and household debt that year.

The speaker’s words are reported faithfully. "Social media platforms", "conspicuous consumption" and "household debt" stay, and nothing is added.

Example: She said, “I am busy this week.” → She said that she was busy that week.

Why the Other Options are Incorrect?

Option 1: The economist said that this year social media platforms are responsible for the rise in conspicuous consumption and consequently household debt. — Incorrect.

• "Are" is not moved back to were, and "this year" is not changed to that year.
• It adds "consequently", a cause-and-effect link the economist never stated.

Option 2: The economist said social media platforms are responsible for the rise in conspicuous consumption and consequently household debt in that year. — Incorrect.

• "Are" is not moved back to were, although the time word has already become "that year".
• It adds "consequently", which changes what the economist said.

Option 3: The economist declared that social media is responsible for the rise in conscious consumption and rise in household debt in recent years. — Incorrect.

• "Conscious" (aware) replaces "conspicuous" (showy, meant to be noticed), so the meaning changes.
• "Social media platforms" is cut to "social media", "is" is not moved back, and "this year" becomes "in recent years", a different time.