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I have attempted a problem which required me to use Euler's phi function. In doing so I have assumed that $\varphi(xy)=\varphi(x)\varphi(y).$

Am I right to do this or have I made a mistake?

MHW
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You can use this only if $x,y$ are coprime.

E.g. see this post:

What's the proof that the Euler totient function is multiplicative?

flawr
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If $x$ and $y$ are relatively prime, that is, they have no common divisors, then this is true. However, in general it is false.

For example, for $x = y = 3$, we have that $\phi(x) = \phi(y) = \phi(3) = 2$ but $\phi(xy) = \phi(9) = 6$.

John Doe
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The situation is expressed by the language that $\varphi $ is multiplicative, but not completely multiplicative.

It is essentially the Chinese remainder theorem, which tells us that when $(x,y)=1$, we have $\varphi (xy)=\varphi (x)\varphi (y) $.

(It is not always true without the restriction that $x $ and $y $ are co-prime.)