Final answer:
Metformin works by decreasing hepatic glucose production, reducing glucose absorption in the intestines, and increasing insulin sensitivity, thus helping to lower blood glucose levels in individuals with type 2 diabetes.
Step-by-step explanation:
The actions of the drug metformin include decreasing hepatic glucose production and intestinal glucose absorption as well as increasing sensitivity to insulin. Specifically, metformin inhibits gluconeogenesis in the liver, which is one process by which glucose is produced within the body. It also reduces the absorption of glucose in the intestines, contributing to a lower blood glucose level. Additionally, metformin benefits individuals with type 2 diabetes by improving insulin sensitivity of cells, which makes it easier for the body to absorb glucose and use it for energy. Thus, the correct answer is 'Both A and B': Metformin decreases hepatic glucose production and intestinal glucose absorption, and it increases sensitivity to insulin.