Please explain why the answer "downward; downward" is correct in 3 sentences.

Claus is an entrepreneur who started his small business two years after graduating from MSU. The business has interesting growth opportunities whose feasibility depends on the cost of money. If Claus, and other entrepreneurs believe the economy will soften in the future, this will put pressure on the demand for loanable funds and pressure on interest rates. x upward; downward upward; upward downward; downward downward; upward