Hello. I am new to business stream. I was a science student so I am not familiar with the way to think the problem in this subject. I would like to ask about the logical route for the relationship between interest rate and issue money. It seems that this involves the supply and demand theory.
When the market is in recession. The central bank issue money and loans the money to other banks. Then they hope the other banks lend money to the companies.
In this case, the interest rate would decrease because of increase in availability of money and 'credit' in a country.
So, my question is why the interest rate would decrease and I would love a detail answer (like what is the mechanism of this)
Is it because the supply of money increases, so the banks need to lower their interest rate in order to attract people to borrow from them?

Also, I would like to ask what is increase in availability of credit? Is it means that more money can be lent to others?