Let L be a proper differentiation invariant subspace of C∞(a,b) such that the restriction operator has a discrete spectrum Λ (counting with multiplicities). We prove that L is spanned by functions vanishing outside some closed interval I⊂(a,b) and monomial exponentials xkeλx corresponding to Λ if its density is strictly less than the critical value , and moreover, we show that the result is not necessarily true when the density of Λ equals the critical value. This answers a question posed by the first author and B. Korenblum. Finally, if the residual part of L is trivial, then L is spanned by the monomial exponentials it contains.