Final answer:
Hepcidin suppresses the production of Erythropoietin (EPO), which is responsible for stimulating the production of red blood cells in the bone marrow.
Step-by-step explanation:
Hepcidin suppresses the production of Erythropoietin (EPO). EPO is a hormone secreted by the kidneys in response to low oxygen levels in the blood. It stimulates the production of red blood cells in the bone marrow, which increases the level of oxygen carried in the blood. Therefore, when hepcidin suppresses the production of EPO, it reduces the production of red blood cells.