The answer is below.
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Both of them are in earth's gravitational field, so both of them are "falling" toward earth. The apple falling is fairly intuitive as it falls toward the ground. However, the fact that the moon is falling is less clear since it is in a centripetal path due to earth's gravitational field. However, a centripetal path can be thought of as a series of small falls, so thus, even though the moon is going in a circle, it is falling.