Frequently Asked Questions
See: this FAQ entry
No. As in the novel, Fats is not an supernaturally animate doll, but the inanimate dummy of a seriously disturbed ventriloquist who believes Fats is alive. Fats is actually an outlet for Corky's insanity, his alter-ego who says the things he cannot.
Then again, there are moments in the movie that make you wonder, various borderline moments designed to keep the possibility in the audience's mind. But the ending resolves the issue once and for all.
Watch two different trailers for Magic (1978) on:
YouTube (posted by IMACACI) here
YouTube (posted by videojaxx) here
No, she's speaks like Fats in order to please Corky, showing she loves him despite everything. She doesn't know that he's dead yet....