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Because of COVID-19, the Canadian economy is experiencing a recession. The government speeds up the Green Line Extension of C-train, where C-train is the public

Because of COVID-19, the Canadian economy is experiencing a recession. The government speeds up the Green Line Extension of C-train, where C-train is the public transit in Calgary. According to the IS-LM model, which of the following best describes the government's action?

consumption increases, investment increases,and the general price level increases in the short-run equilibrium.

consumption increases, investment increases,and the general price level decreases in the short-run equilibrium.

consumptiondecreases, investment decreases,and the general price level increases in the short-run equilibrium.

consumption decreases, investmentdecreases,and the general price leveldecreasesin the short-run equilibrium.

None of the other answers is correct.

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