Wow, thank you all for the info.
Using "dfrac" worked well and seems like the easiest option for that particular situation. I am a math instructor and by no means an expert at moodle or IT in general. Most of the info presented above was a little over my head. Let let me see if I can get some clarification on a few points and I will also pass this on to our site administrator for some help.
Although changing the code to 'defrac' instead of 'frac' worked fine in that situation, is there a way that I can alter the settings in Math Type so that it will translate a formula into code that will give me a better rendered graphic (for example, it will translate to 'defrac' instead of 'frac')? I am using the most current version of Math Type and have it set to translate to "Tex - LaTex 2.09 or later." I very much wish to avoid always having to alter code once it is in Moodle. I am creating a quiz question database with a large number of questions and altering code individually would be too time consuming. It is also a foreign language that I don't care to spend a lot of time learning.
Or is part of the problem with the TeX filter our site is using? I believe we are using the the filter that comes standard with Moodle. We are running v1.9.5+. I have noticed that even when creating simple formulas with DragMath they don't end up looking that great. Again, it would be nice not to have to alter the TeX code that DragMath creates. Should we look at using a different filter?
Thanks for everyone's help