The phrase to search is “transmission mechanism of monetary policy”, but generally, your customers’ financing is also more expensive, so they can afford less at

The phrase to search is “transmission mechanism of monetary policy”, but generally, your customers’ financing is also more expensive, so they can afford less at current prices, let alone higher ones. Reduced income and increase expense means you cancel investments and lay off staff. The reduced demand for investment goods and workers means less upward pressure on prices.