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An arithmetic function $f$ is multiplicative when $f(1)=1$ and $f(mn)=f(m)f(n)$ whenever $m$ and $n$ are coprime. If $m$ and $n$ are coprime, every divisor $d$ of $mn$ has a unique factorization $d=d_1{d}_2$ with $d_1\mid m$ and $d_2\mid n$. Hence the Dirichlet convolution of multiplicative functions satisfiesand $(f\star g)(1)=1$, so it is multiplicative.

Let $\epsilon$ be the identity for Dirichlet convolution, with $\epsilon (1)=1$ and $\epsilon (n)=0$ for $n>1$. The Möbius function satisfies $\mu \star 1=\epsilon$. Therefore, using commutativity and associativity,This is the Möbius inversion formula.