If you specify both `inline' and `extern'in the function definition, then the definition is used only for inlining. Inno case is the function compiled on its own, not even if you refer to its address explicitly. Such an address becomes an external reference, as if you had only declared the function, and had not defined it.
This combination of `inline' and `extern' has almost the effect of a macro. The way to use it is to put a function definition in a header file with these keywords, and put another copy of the definition (lacking `inline' and `extern') in a library file. The definition in the header file will cause most calls to the function to be inlined. If any uses of the function remain, they will refer to the single copy in the library.
Since GCC 4.3 will implement ISO C99 semantics for inline functions, it is simplest to use `static inline' only to guarantee compatibility. (The existing semantics will remain available when `-std=gnu89' is specified, but eventually the default will be `-std=gnu99'; that will implement the C99 semantics, though it does notdo so in versions of GCC before 4.3\. After the default changes, the existing semantics will still be available via the `-fgnu89-inline' option or the `gnu_inline' function attribute.)
GCC does not inline any functions when not optimizing unless you specify the `always_inline' attribute for the function, like this: /* Prototype. */ inline void foo (const char) __attribute__((always_inline));
The behavior of the executables will be different with or without the -O option of gcc. Compile it without -O, the program will print “extern”. Compile it with -O, the program will print “intern”.