The same amount of steel used to create eight solid steel balls, each with a radius of 1 inch, is used to create one larger steel ball. What is the radius of the larger ball?

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filldraw(circle((4.8,-.4),1),gray);
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The amount of steel used to create one ball with radius 1 is $\frac{4}{3}\pi(1^3)=\frac{4}{3}\pi$; the amount of steel used to create eight of these balls is $8\cdot \frac{4}{3}\pi = \frac{32}{3}\pi$.

Let the radius of the large steel be $r$.  We have $\frac{4}{3}\pi r^3 = \frac{32}{3}\pi$; solving for $r$ yields $r^3 = 8 \Rightarrow r = 2$.  Thus the radius of the large ball is $\boxed{2}$ inches.