How can I (and should I) approach a teacher with a difficult attitude in lessons?
I disagree that you should instantly resort to official channels. As an adult, in any environment, when you disagree with someone, or someone's methods or attitude, it is only fair to first allow the person you take exception with to know what they might be doing which upsets or discourages others. 

As your teacher keeps asking questions, she is clearly interested in an interactive class, and probably wonders why feedback dies down. If you tell her courteously during office hours that some are intimidated by the way she formulates her corrections, she quite possibly appreciates that you let her know. Tell her to give feedback with a smile, to thank people for chiming in, and to maybe help the person when answering by letting them discover their error themselves ("You said X; but in this context, what about Y?" or such). If she doesn't change anything after meeting her, or it is clear she resents you for bringing this up, you can always escalate up the ladder. 

Concern is mentioned that this could lead to retaliation after you politely make constructive suggestions.
As said above, I doubt that; and if she would retaliate, this is against all sort of regulations. This would endanger her standing at the university. You can never exclude the possibility, but if you don't stand up for yourself, and your classmates, now, when will you learn to? You will face similar disagreements throughout your career, and want to be prepared for it. 

This applies particularly when your teacher is still working on tenure. Those many years are fairly brutal even under good circumstances. There is no need to have her summoned to her department head for something she isn't even aware of,