Raised hackles is a sign of "flight or flight". Without observing both you and the dog and the particular situation we cannot know for sure.
What we do know is that if you pull on the lead and say "no" in a stern voice you are communicating to your dog that she is correct in being concerned with something and this behaviour may increase and she will associate the appearance of dogs with you being a "bit of a pain" to her and therefore her natural response is going to be "oh oh, here comes another dog, my owner starts making me feel uncomfortable by pulling on the lead and being stern so I better make sure it goes away quick" so that things can get back to normal................
http://www.flyingdogpress.com/casehis.htmlRead this, it might make you look at the situation dog from a slightly different angle