As I heard too many times , people use this sentence
"we will see what happens "
Shouldn't it be "we will see what is happening" ? Because the thing to happen is simultaneous with the verb 'seeing' and a temporary thing.
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When people say things like We'll see what happens or We'll see what he does or We'll see how they respond, the context is usually some decision which has just been reached or some plan of action—or inaction!—to be initiated in the immediate future; and the see is less about watching future consequences as they unfold but about the 'ultimate' consequences, the state which results from future events.
We'll see what happens. If the situation changes we can consider a new policy.
The simple present with future reference thus has something like perfective aspect, like a simple past or a 'historical' present.
A present progressive with future reference is employed only in situations where you're speaking about an 'imperfective' future situation:
We haven't decided what we're going to do for her birthday. We'll see what's happening that night, and pick an event she enjoys.