#### Answer

Kinetic Energy will increase
Potential Energy will decrease

#### Work Step by Step

Potential Energy is mgh where m is the mass of the object, g is the acceleration due to gravity and h is the height above the ground. As the book falls, it keeps the same mass and the same g but the height above the ground decreases so the potential energy will decrease. Kinetic Energy is $1/2mv^2$ where m is the mass of the object and v is the velocity. As the book continues to fall, it will accelerate at 9.81 $m/s^2$ due to gravity so its velocity will increase and the Kinetic Energy will increase.