Baloney and baloney are entirely different. Depends on the context.
"Pass the baloney" would mean "pass the bologna" at a candlelight dinner unless it was a tongue in cheek remark following an embellished story someone just told. If bologna was on the table, and such a story was told, it would be difficult to discern unless "pass the baloney" was spoken along with a telltale gesture such as nodding toward the serving platter or rolling the eyes upward. In either case, if it were important to understand the context in this situation, you would simply pass the bologna and observe the reaction. Sure, you would appear simplistic if mistaken, but you would only do this if it were important to understand. Sitting next to the boloney plate would make it even more difficult if you missed the gesture and there would be no choice but chalk up another hit in the simplistic column.