Final answer:
Marbury v. Madison increased federal government power by establishing the principle of judicial review, which allows the Supreme Court to declare laws unconstitutional.
Step-by-step explanation:
The landmark case of Marbury v. Madison in 1803 significantly increased the power of the federal government in the United States. The correct answer to how it increased the federal government's power is option C: It gave power to the Supreme Court to declare laws and actions of the other two branches of government unconstitutional. This assertion established the powerful principle of judicial review, which allowed the Supreme Court to evaluate and nullify any legislative or executive actions that it found contrary to the Constitution, thereby extending its influence and ensuring the constitutionality of federal actions.