If you have enough decorations to activate lvl 1 and lvl 2 character's effects, can you activate BOTH effects or you must choose ONLY ONE of them?
From the ruleboook (source), page 10:
When a Character has received a certain amount (or more) of the indicated Decorations, that Character “levels up”, giving you access to more powerful effects to aid you in your escape. When a Character becomes Level 2, that Character has all of the abilities of Level 1 as well as Level 2.
So yes, when a charachter becomes level 2 they can use all abilities of level 1 and level 2.