Consider the following statements: The Governments

Consider the following statements:

The Governments can increase the Floor Space Index to curb the real estate prices
The Increased Floor Space Index means less apartments in the same plot area

which among the above statements is / are correct?

[A] Only 1 is correct
[B] Only 2 is correct
[C] Both 1 and 2 are correct
[D] Neither 1 nor 2 is correct