The calculator will show you the number rounded to the maximum number of displayable digits, just as it does with any number that exceeds the precision of the calculator.
It depends upon the calculator. Most calculators do the above; however, the more recent common Casio calculators (eg the fx-83GT Plus) has the ability to display the recurring decimal as a recurring decimal with a dot over the recurring digit (or over the first and last recurring digits if more than 1 digit recurs), as a fraction or as above, with the ability to change the display between them.
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Nothing, calculators cannot display repeating decimal numbers, they terminate them at the number of digits they can handle.
However try any division calculation where the numerator and denominator are relatively prime (e.g. 1/3, 4/7, 22/15) and the result should be a repeating decimal (the calculator will stop the repeating however).
Nothing bad happens. It will show the repeating numbers until it runs out of room. You're expected to recognize it repeats and do the rounding up or down as you need.