Which of the following is most responsible for increases in the federal minimum wage?

• A. The Federal Reserve
• B. The United States Congress
• C. The Supreme Court
• D. State governments

Answer: (B)

Verified step by step guidance

1. Understand the roles of different institutions in the U.S. economic and legal system: The Federal Reserve, the United States Congress, the Supreme Court, and State governments each have distinct functions.
2. Recall that the Federal Reserve primarily manages monetary policy, such as controlling interest rates and money supply, but does not set wage laws.
3. Recognize that the United States Congress is the legislative body responsible for creating and amending federal laws, including the federal minimum wage.
4. Note that the Supreme Court interprets laws and can rule on their constitutionality but does not create or increase wages.
5. Understand that while state governments can set their own minimum wages, increases in the federal minimum wage specifically come from legislation passed by the United States Congress.