How can Interest Rate and Credit Availability affect Investment

-Firms will Borrow to Invest usually. So therefore the Interest Rates will influence if the Firm will Take out a Loan or not. [High Interest Rates = No] -Higher Interest Rates will also incur a Greater Opportunity Cost on Existing Loans - you’ll have to Pay More. -And obviously the Availability of Credit will affect it - No Credit [Loans] means little Investment