Run `ip link help` and you get the answers :
ip l set lo multicast on
from `ip-link(8)`:
> ip link set { DEVICE | group GROUP }
>
>
> [ { up | down } ]
> [ type ETYPE TYPE_ARGS ]
> [ arp { on | off } ]
> [ dynamic { on | off } ]
> [ multicast { on | off } ]
>