I'm an ESL teacher. Normally I teach lower intermediate but I also teach a mixed level grammar review class. I pride myself on being able to explain things clearly but today I found myself in THREE sticky situations all in the same class! I'll explain here the two problems involving conditionals.
First Case: Is it better to say...
If he knew that I WERE/WAS home now, he would call. OR If he knew that I AM home now, he would call.
Does the second verb in the if clause also take the subjunctive form because it is in the if clause or should it take the present simple form because it is not a hypothetical (I am home now is not hypothetical, his knowledge of it is.)