Final answer:
Larry, as an elderly individual at poverty level living in a middle-class neighborhood, is likely to feel worse about his economic status considering the psychological effects of relative deprivation. Option b is correct answer.
Step-by-step explanation:
The question you've posed pertains to the social and psychological effects of poverty on elderly individuals within the context of their environment and social class. Combining the information you've provided with social theories, elderly individuals like Larry, who find themselves at poverty level in a middle-class neighborhood, may experience feelings of relative deprivation. This compares their situation unfavorably to their more affluent neighbors and can lead to negative psychological and social outcomes.
According to the text and supporting information, elderly poverty rates have improved over the decades, but issues such as the 2008 recession have had a negative impact on the financial security of some older individuals. Given the historical context where older populations once had the highest risk of poverty, and the psychological impact of relative wealth or poverty as suggested by Dorothy's letter, the most likely scenario for Larry is that he would feel worse about his economic status (option b). This is due to the socio-economic disparities in his neighborhood which may accentuate his awareness of being impoverished.
Contrasting Larry’s situation with the trends over time where the standard of living has generally increased, and people outlive the life expectancy for their year of birth and gender, it still remains that economic difficulty at an advanced age could possibly have adverse effects on his mental and possibly physical well-being. The information provided does not give us enough insight to suggest that Larry would either die sooner or live longer than expected or feel better about his economic status in a more affluent area.