Can the availability of credit be used to stimulate investment?

Mark: 2:1

The recession and the credit crunch provided one of the first economic dilemmas for the UK in the last 20 years. The assignment for corporate finance took the context of the recent recession. One particular stimulating essay pitches the initial idea that the neoclassical ideology of the availability of credit through interest rates is the main decisive factor of investment. However, while I agree that a low interest rate may stimulate more long term investment decisions the state of the economy and stability of the economic cycle is just as influential in investment decisions.